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Bank Resolution (Recapitalisation) Bill [HL]: HL Bill 2 of 2024–25

The Bank Resolution (Recapitalisation) Bill [HL] is a government bill. It was announced in the King’s Speech on 17 July 2024 and was introduced in the House of Lords the following day. The second reading of the bill is due to take place on 30 July 2024.

The bill seeks to enhance the UK’s regime for managing bank failures, termed resolution. Specifically, it would introduce a mechanism which would allow the Bank of England—the UK’s resolution authority—to recover the costs associated with recapitalising failing small banks through a levy on the banking sector.

The government has argued that this will provide the Bank of England with a more flexible toolkit when responding to the failure of small banks, while ensuring that the costs of managing such failure do not fall on taxpayers. Respondents to a consultation on the proposals were broadly supportive.