Part III Financial Sectors and Activities, 16 Banks and Banking

Abstract

This chapter examines the statutory regime for the regulation of banks and banking in the UK. It first considers the development of UK banking supervision before discussing the traditional nature of bank supervision and the role and function of the Bank of England. It then reviews earlier and more recent crises in UK banking markets, including with regard to Northern Rock, and the circumstances surrounding the transfer of responsibility for bank supervision initially from the Bank of England to the Financial Services Authority (FSA) and then from the FSA to the Prudential Regulation Authority. It also analyses the main provisions contained in the Bank of England Act 1998, later amendments under the the Banking Act 2009 and the Financial Services Act 2012, and relevant sections of the Financial Services and Markets Act 2000 (FSMA). Finally, it explores the most recent changes announced with regard to ring-fencing, recovery planning, and resolution.