Clause 5
Banking Bill
5:30 pm
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
I think I understand where the hon. Gentleman is coming from—it relates to the clarity of the code and what the code says the default options should be. As I understand his view, it is that the instinctive reaction is that action should be taken, rather than that the market should run its course and the bank should end up in administration or insolvency. The drafting of paragraph 29 certainly suggests that the expectation is that default will end up in administration or insolvency, rather than that all the stabilisation powers should be used first. Perhaps the language needs to be clarified further to get it right so that we can understand the sequencing or the priorities.