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Clause 76

Banking Bill – in a Public Bill Committee at 10:15 am on 13th November 2008.

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Credit unions

Question proposed, That the clause stand part of the Bill.

Photo of Mark Hoban Mark Hoban Shadow Minister (Treasury)

I have a quick question for the Minister. In what circumstances does he envisage introducing orders to apply the SRR to credit unions?

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

The clause creates a power to extend the SRR to credit unions. We will keep the position under review, but we have no immediate plans to extend stabilisation powers such as bridge bank, temporary public ownership and private sector purchasing powers to credit unions at this time. Credit unions have a relatively small number of depositors, and their failure does not pose the same threat to financial stability that the failure of banks and building societies might. Moreover, credit unions are dealt with effectively under existing insolvency procedures. However, it is important to keep the matter under review. We have talked about future-proofing legislation, and that is what this provision does.

Question put and agreed to.

Clause 76 ordered to stand part of the Bill.

Further consideration adjourned.—[Mr. Blizzard.]

Adjourned accordingly at twenty-four minutes past Ten o’clock till this day at One o’clock.