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Banking Bill

My Lords, the amendment would add a subsection to Clause 5 requiring the code to provide guidance on the Treasury’s interpretation of objective 1 within the special resolution objectives. This is the financial stability objective. We had quite a lot of discussion about definitions of financial stability in relation both to Clause 5 and to the Bank of England’s new financial stability objective in Clause 235. We were concerned that there could be ambiguity around that definition, especially in view of the rather narrow definition that a representative from the Bank of England had given to the committee in another place. We felt that it was important that there was an official definition. We recognised that, as the noble Lord, Lord Eatwell, pointed out, the financial system is characterised by continuous innovation and change and that the definition may well vary over time. That is why the code, rather than the Bill, is the right place for a definition. I felt strongly about the Treasury having an obligation to give guidance about what it means by financial stability. That is why I have tabled this amendment, which is a gamma version to replace the beta version that I tested in Committee. Since then, the Government have tabled their Amendment 8, which is in this group. I shall leave the Minister to speak to his amendments. I am not sure exactly in what terms he will do so and I shall listen carefully. If what he says is satisfactory, I shall in due course be happy to withdraw my amendment in favour of his. For the time being, I beg to move.