Clause 170
Banking Bill
11:15 am
David Gauke (Shadow Minister, Treasury; South West Hertfordshire, Conservative)
Again I am grateful to my hon. Friend. My reading was that, if the Government provide the payment system services, they are essentially performing that role, which is what happens in some jurisdictions. The Government are maintaining that option, although not on the face of the Bill. They do not need to do so in the Bill, but the explanatory note hints at the possibility of circumstances in which the Government would step in, such would be the systemic risk at that time. I am not saying that that would necessarily be the wrong thing to do, but elaboration from the Minister would be helpful to the Committee.
If my hon. Friend does not wish to intervene, I shall go back to the point about the real-time gross settlement system, and to what extent that can be seen as separate from the overall CHAPS. For example, is there a contributory element? If so, it would be regulated by the Bank of England, and we would have circumstances in which an element of CHAPS is both operated and regulated by the Bank of England. That is my understanding, and I do not think that subsection (3) changes that. I should be grateful for the Minister’s confirmation.
Subject to that, I have more points to raise with regard to the scope of the recognition system, but it would be appropriate to address that under clause 171.