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Banking Bill

The Government are seeking the necessary flexibility to envisage those situations that have not obtained thus far but may do. With a holding company with a failing deposit-taker in its framework, it is right that the authorities should examine the nature of the direction and policies pursued. After all, the holding company might hold another deposit-taker. Of course, it will be necessary to examine the implications of the failed institution that is going into the special resolution regime and what impact it has on the group, as well as the effect that the holding company has on deposit-takers in its framework. I shall not convince the noble Baroness that these powers are necessary unless she accepts the fact that the authorities should not make provision solely for a bank taking a deposit that belongs to a group when some of the direction and policy of the bank may relate to influences beyond its own directors; it might even have directors in common with the holding company. There would be no option but to examine that kind of situation. That is all that the Government are seeking in these terms. Amendment 116 agreed.