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Banking Bill (Money)

My understanding of the situation is that that is correct. Let me explain in a bit more detail. As I outlined, the Treasury may take a holding company into temporary public ownership only under the purposes set out in clause 9—that is, if it is"““necessary to resolve or reduce a serious threat to the stability of the financial systems of the United Kingdom””" or"““necessary to protect the public interest””" where financial assistance has been provided. ““Necessary”” is a high test, and as part of that test the Treasury will have to consider whether resolution of the deposit taker would meet the specific conditions set out in clause 9. It is possible to address the purposes specified in clause 9 by taking action in relation to the deposit taker. It would not be necessary to take action in relation to the holding company. That emphasises that action in relation to the holding company is very much a last resort.