Clause 156
Banking Bill
1:45 pm
Ian Pearson (Parliamentary Under-Secretary, Department for Business, Enterprise & Regulatory Reform; Dudley South, Labour)
I have made it clear to the hon. Gentleman that the pre-funding issue and the powers that we seek potentially go beyond banks and building societies. His amendments seek, principally, to limit the provisions to that, which is why we are inviting the Committee to reject them. However, I confirm that we accept the general principle that institutions should consume their own smoke.
On cross-subsidy, it is in the general interests of financial stability, which all financial services firms benefit from, that they should contribute and provide to a scheme. It is therefore right that the generality of financial services schemes should contribute where costs to deposit takers are likely to be above £1.8 billion per annum.