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Clause 80

Banking Bill – in a Public Bill Committee at 1:30 pm on 13th November 2008.

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Interpretation: other expressions

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

Photo of Mark Hoban Mark Hoban Shadow Minister (Treasury)

I draw the Minister’s attention to clause 80(4)(a). As I understand it, no de minimis limit applies, so if a bank was unable to pay a sum that was due—say, £10—the insolvency procedure could be triggered, but how does that interact with the threshold conditions? We have established that the stabilisation powers will be operated only if the FSA believes that the threshold conditions have been breached. Presumably, there would have to be a material breach of the threshold condition about adequate resources to trigger some of the Bill’s processes. Is there a gap between that approach to triggering the procedures and the approach in subsection (4)(a), which I suspect is fairly standard, but which suggests that an inability to pay a trivial amount could trigger them?

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 1:45 pm, 13th November 2008

I admit that I do not have an answer to that question now. In general, the clause simply sets out the meanings of terms used throughout part 2. I need to seek clarification on the exact interrelationship that the hon. Gentleman is talking about, so if the hon. Gentleman agrees, I shall write to him.

Question put and agreed to.

Clause 80 ordered to stand part of the Bill.

Clauses 81 to 85 ordered to stand part of the Bill.