Clause 5
Banking Bill
5:30 pm
Mark Todd (South Derbyshire, Labour)
The hon. Gentleman highlights a concern that I share. The code is silent on whether the institutions involved should just stand aside and let the bank collapse, on the basis that its collapse poses no systemic risk to financial stability in the UK. That implication is not set out in the code; in fact, the default position is that the authorities will take some action, almost no matter which financial institution is involved, on whatever scale and however isolated the impact might be. I would welcome the greater clarity in the simple position: “This is a matter for the market to resolve. We shouldn’t be involved at all.”