UK Act of Parliament 2009 United Kingdom

Banking Act 2009 (as amended)

View on legislation.gov.uk (opens in a new tab) Ask Guv about this Act

At a glance

Enforced by

FCA, PRA

What's here

76 compliance obligations, 2 practical guides · 13 statutory instruments

Penalty landscape

6 of 76 obligations carry an unlimited fine. 2 carry different penalties and 68 have no criminal penalty — flagged in the list below.

Who this Act binds

Business-side actors with duties under this Act, ranked by how often they appear.

  • Director or Officer 16
  • Any Person 11
  • Operator 1
  • Trader 1

Plus 47 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Direct — cites this Act

1 guides

Supporting — topic alignment

1 guides

Other Acts binding the same actors

For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.

Directors and Officers also bound by 224 other Acts (top 5 shown)
Any Person also bound by 749 other Acts (top 5 shown)
Operators also bound by 125 other Acts (top 5 shown)
Traders also bound by 219 other Acts (top 5 shown)

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Part 1 — Special Resolution Regime

s.003

Safeguards relating to directions under section 3A

Other duties (1) — Crown / regulator
  • Bank of England must follow safeguard procedures when issuing directions Statutory regulator
s.004

Special resolution objectives

Other duties (1) — Crown / regulator
  • Regulators must follow specific objectives when intervening with failing banks Statutory regulator
s.005

Code of practice

Other duties (1) — Crown / regulator
  • Relevant authorities must follow the Banking Act Code of Practice Statutory regulator
s.006

Mandatory reduction instruments: supplementary matters

Other duties (1) — Crown / regulator
  • Bank of England must report to the Treasury on mandatory reduction instruments Statutory regulator
s.006

Pre-resolution valuation

Other duties (1) — Crown / regulator
  • Bank of England must value bank assets before taking resolution action Statutory regulator
s.010

Banking Liaison Panel

Other duties (1) — Crown / regulator
  • The Treasury must maintain a Banking Liaison Panel to advise on bank resolutions Crown / Minister / Government department
s.024

Procedure: instruments

Other duties (1) — Crown / regulator
  • Bank of England must notify you and publish share transfer instruments Statutory regulator
s.039

Foreign property

  • Ensure effective transfer of foreign property and liabilities Any Person
s.041

Procedure

Other duties (1) — Crown / regulator
  • Bank of England must notify and publish bank property transfer instruments Statutory regulator
s.044

Report on special bail-in provision

Other duties (1) — Crown / regulator
  • Bank of England must report to the Chancellor on bail-in provisions Statutory regulator
s.048

Report on special bail-in provision

Other duties (1) — Crown / regulator
  • Bank of England must report on bail-in decisions and notify the Chancellor Statutory regulator
s.048

Business reorganisation plans

  • Create and submit a business reorganisation plan Director or Officer
s.048

Directions in or under resolution instrument

  • Directors must comply with Bank of England directions during bank resolution Director or Officer
s.048

Procedure

Other duties (1) — Crown / regulator
  • Bank of England must notify and publish bank resolution instruments Statutory regulator
s.048

Replacement of Bank’s provisional valuation

Other duties (1) — Crown / regulator
  • Bank of England must appoint an independent valuer for a full valuation Statutory regulator
s.050

Sale to private sector purchaser

Other duties (1) — Crown / regulator
  • The Treasury must create a compensation scheme for private sales Crown / Minister / Government department
s.051

Transfer to temporary public ownership

Other duties (1) — Crown / regulator
  • HM Treasury must establish compensation or resolution fund orders Crown / Minister / Government department
s.052

Transfer to resolution company

Other duties (1) — Crown / regulator
  • HM Treasury must issue a resolution fund order following a bank transfer Crown / Minister / Government department
s.052

Bail-in option

Other duties (1) — Crown / regulator
  • The Treasury must issue a bail-in compensation order Crown / Minister / Government department
s.060

Principle of no less favourable treatment

Other duties (1) — Crown / regulator
  • HM Treasury must ensure creditors are not worse off under bank resolution Crown / Minister / Government department
s.070

Restriction of security interests

Other duties (1) — Crown / regulator
  • Bank of England may temporarily suspend your right to enforce security Statutory regulator
s.079

Private sector purchaser: report

Other duties (1) — Crown / regulator
  • Bank of England must report on the sale of a bank to a private purchaser Statutory regulator
s.080

Resolution company: report

Other duties (1) — Crown / regulator
  • Bank of England must report annually on resolution companies to the Chancellor Statutory regulator
s.080

Transfer for bail-in purposes: report

Other duties (1) — Crown / regulator
  • Bank of England must report to the Treasury following a bail-in Statutory regulator
s.081

Temporary public ownership: report

Other duties (1) — Crown / regulator
  • The Treasury must report to Parliament on banks in public ownership Crown / Minister / Government department
s.081

Accounting information to be included in reports under sections 80 , 80A(2)(b) and 81

  • Include specific accounting information in bank resolution reports Any Person
s.083

Investigations: general

3 months imprisonment
Other duties (1) — Crown / regulator
  • Bank of England must notify businesses of formal investigations Statutory regulator
s.083

Prosecution of offences under section 83ZN

Other duties (1) — Crown / regulator
  • Bank of England must follow Treasury conditions when prosecuting offences Statutory regulator
s.083

Determination of sanctions

Other duties (1) — Crown / regulator
  • Bank of England must consider specific criteria when setting sanctions Statutory regulator
s.083

Co-operation

Other duties (1) — Crown / regulator
  • Bank of England must co-operate with other regulators on sanctions Statutory regulator
s.084

Further provision: conversion of building society into company

  • Prepare specific company documents for building society conversion Trader
s.089

Resolution of UK branches of third-country institutions

  • Cooperate with UK branch valuation and resolution assessments Director or Officer
Browse 187 other sections in this Part — procedural / definitional / commencement
s.003

Removal of impediments to the exercise of stabilisation powers etc

s.006

Cases where mandatory write-down, conversion, etc applies

s.006

Mandatory write-down, conversion, etc of capital instruments and liabilities

s.006

Mandatory reduction instruments: implementation of requirements of section 6B

s.007

Effect on other group members, financial stability in UK etc

s.008

Specific condition: bail-in

s.008

Specific conditions: asset management vehicle

s.011

Private sector purchaser: marketing

s.012

Bail-in option

s.012

Bail-in: sequence of write-down and conversion of capital instruments and liabilities

s.012

Bail-in administrators

s.012

Asset management vehicle

s.026

... reverse share transfer instruments

s.026

Onward share transfer instruments

s.029

Interpretation: “resolution company”

s.036

Directors and senior managers

s.039

Banks which are recognised central counterparties

s.039

Property transfer instrument: delisting

s.041

Transfer of property subsequent to resolution instrument

s.042

Private sector purchaser: reverse property transfer

s.044

Bail in: reverse property transfer

s.044

Property transfer instruments: special bail-in provision

s.044

Property transfer instruments and special bail-in provision: supplementary matters

s.044

Bridge bank: supplemental property transfer powers

s.044

Bridge bank: supplemental reverse property transfer powers

s.048

Creation of liabilities

s.048

Special bail-in provision

s.048

Meaning of “protected deposit”

s.048

General interpretation of section 48B

s.048

Power to amend definition of “excluded liabilities”

s.048

Priority between creditors

s.048

Bail-in administrator: further functions

s.048

Bail-in administrator: supplementary

s.048

Bail-in administrator: money

s.048

Powers in relation to securities

s.048

Termination rights, etc

s.048

Directors and senior managers

s.048

Orders for safeguarding certain financial arrangements

s.048

Continuity

s.048

Execution and registration of instruments etc

s.048

Resolution instruments: general matters

s.048

Supplemental resolution instruments

s.048

Onward transfer

s.048

Reverse transfer

s.048

Bail-in option: recovery of expenses

s.048

Consequences of a replacement valuation

s.048

Termination rights etc

s.060

Further mandatory provision: bail-in provision

s.062

Independent valuer: sections 6E and 48X

s.062

Resolution administrator

s.062

Resolution administrator: further functions

s.062

Resolution administrator: supplementary

s.062

Resolution administrator: money

s.070

Suspension of obligations

s.070

Suspension of termination rights

s.070

Suspension: general provisions

s.078

Pre-conditions for financial assistance: duty of Bank to give information

s.081

Cases where mandatory write-down, conversion etc applies: banking group companies

s.081

Sale to commercial purchaser and transfer to bridge bank

s.081

Bail-in option

s.081

Bail-in option: supplemental powers in relation to certain holding companies

s.081

Assessment of conditions for section 81BB

s.081

Sections 81AA to 81ZBB: supplemental

s.081

Section 81BA and Section 81BB : supplemental

s.081

Interpretation: “banking group company” &c.

s.081

Transfer to asset management vehicle

s.081

Transfer to asset management vehicle: supplemental powers in relation to certain holding companies

s.081

Assessment of conditions for section 81ZBB

s.081

Sale to commercial purchaser and transfer to bridge bank: supplemental powers in relation to certain holding companies

s.081

Assessment of conditions for section 81ZZBA

s.083

Modifications of Part

s.083

Delegation of enforcement functions

s.083

Information

s.083

Reports by skilled persons

s.083

Appointment of persons to carry out general investigations

s.083

Appointment of person to carry out investigations in particular cases

s.083

Investigations etc in support of foreign resolution authorities

s.083

Powers of persons appointed under section 83ZC

s.083

Powers of persons appointed as a result of section 83ZD

s.083

Admissibility of statements made to investigators

s.083

Information and documents: supplemental provision

s.083

Protected items

s.083

Entry of premises under warrant

s.083

Retention of documents obtained under section 83ZL

s.083

Offences etc

s.083

Offences under section 83ZN by bodies corporate etc

s.083

Injunctions: prevent failure to comply with relevant requirement

s.083

Regulatory sanctions

s.083

Procedure: warning notice

s.083

Procedure: decision notice

s.083

Procedure: general

s.083

Appeal

s.083

Injunctions: failure to comply with certain section 83ZR sanctions

s.083

Publication

s.084

Bail-in option: building societies

s.084

Further provision: transfer of business of building society to company

s.084

Transfer to a bridge bank or Bail-in option: modifications of this Act and other legislation

s.084

Bridge bank: share transfer instruments

s.089

Application to investment firms

s.089

Application to recognised central counterparties

s.089

Recognised central counterparty rules

s.089

Recognised central counterparty membership

s.089

Recognition of transferee company

s.089

Recognised central counterparty compensation orders

s.089

Interpretation: “recognised central counterparty” &c.

s.089

Recognition of third-country resolution actions

s.089

Effect of recognition of third-country resolution action by Bank of England

s.089

Third-country instruments: supplementary provision

s.089

Insolvency Proceedings

s.089

Restrictions on disclosure of confidential information

s.089

Giving of notices, documents etc under Part 1

Part 2 — Bank Insolvency

s.099

Objectives

  • Bank liquidators must prioritise depositor protection and winding up Director or Officer
s.112

Replacement

Amended 1 time
Other duties (1) — Crown / regulator
  • Bank of England must appoint a replacement liquidator Statutory regulator
s.120

Notice to the regulators and the Bank of England of preliminary steps

Amended 14 times
s.129

Banks not regulated by PRA

Amended 1 time
Browse 9 other sections in this Part — procedural / definitional / commencement

Part 3 — Bank Administration

s.137

Objectives

Amended 2 times
  • Bank administrator must pursue dual objectives immediately upon appointment Director or Officer
s.145

Power to direct bank administrator

Amended 24 times
s.152

Property transfer from transferred institution

Amended 1 time
s.157

Other processes

Amended 4 times
Other duties (1) — Crown / regulator
  • Regulators must notify Bank of England before insolvency action against a bank Statutory regulator
s.157

Banks not regulated by PRA

Amended 4 times
s.159

Application to investment firms

Amended 1 time

Part 4 — Financial Services Compensation Scheme

Browse 1 other section in this Part — procedural / definitional / commencement

Part 5 — ... Payment Systems and service providers

s.184

Recognition order: DSA service provider

Amended 6 times
s.185

Recognition criteria: DSA service provider

Amended 2 times
s.186

Procedure

Amended 11 times
Other duties (1) — Crown / regulator
  • HM Treasury must consult and notify before designating payment systems Crown / Minister / Government department
s.186

Amendment of recognition order

Amended 11 times
s.187

De-recognition

Amended 13 times
Other duties (1) — Crown / regulator
  • Treasury must consult and notify before revoking a recognition order Crown / Minister / Government department
s.190

Service provider rules

Amended 5 times
s.192

Power of Bank to require FCA to refrain from specified action

Amended 14 times
s.198

Penalty

Amended 6 times
Other duties (1) — Crown / regulator
  • Bank of England must publish and follow penalty principles Statutory regulator
s.201

Warning

Amended 19 times
Other duties (1) — Crown / regulator
  • Bank of England must issue a warning notice before imposing sanctions Statutory regulator
s.202

Injunctions

Amended 9 times
s.203

Records

Amended 5 times
s.203

Annual report

Amended 5 times
Other duties (1) — Crown / regulator
  • Bank of England must report annually to the Treasury on financial stability Statutory regulator
s.203

Policy statement

Amended 5 times
Other duties (1) — Crown / regulator
  • Bank of England must publish oversight policy for digital settlement assets Statutory regulator
s.204

Information

Unlimited fine Amended 32 times
  • Fail to provide information or providing false information to the Bank of England Any Person
s.206

Service providers

Amended 7 times
s.206

Service providers connected with a recognised payment system that uses digital settlement assets

Amended 7 times
s.206

International obligations

Amended 7 times

Part 5A — Wholesale cash distribution

s.206

Overview and purpose

Amended 7 times
s.206

Policy statement

Amended 7 times
Other duties (1) — Crown / regulator
  • Bank of England must publish and consult on wholesale cash policy Statutory regulator
s.206

Interpretation: “wholesale cash distribution”

Amended 7 times
s.206

Interpretation: other terms

Amended 7 times
s.206

Wholesale cash oversight orders

Amended 7 times
s.206

“Market significance” and “systemic significance”

Amended 7 times
s.206

Procedure

Amended 7 times
Other duties (1) — Crown / regulator
  • HM Treasury must follow specific procedures before issuing oversight orders Crown / Minister / Government department
s.206

Amendment or revocation of a wholesale cash oversight order

Amended 7 times
s.206

Principles

Amended 7 times
s.206

Codes of practice

Amended 7 times
s.206

Directions

Amended 7 times
s.206

Role of the FCA, PRA and Payment Systems Regulator

Amended 7 times
Other duties (1) — Crown / regulator
  • Bank of England must consult other regulators before taking action Statutory regulator
s.206

Inspection

Amended 7 times
  • Provide access and cooperation to wholesale cash distribution inspectors Any Person
s.206

Inspection: warrant

Amended 7 times
s.206

Independent report

Amended 7 times
s.206

Compliance failure

Amended 7 times
s.206

Publication

Amended 7 times
s.206

Penalty

Amended 7 times
Other duties (1) — Crown / regulator
  • Bank of England must publish penalty principles and apply them fairly Statutory regulator
s.206

Closure

Unlimited fine Amended 7 times
  • Fail to comply with a wholesale cash distribution closure order Any Person
s.206

Management disqualification

Unlimited fine Amended 7 times
  • Breach of a management disqualification order Any Person
s.206

Warning

Amended 7 times
Other duties (1) — Crown / regulator
  • Bank of England must issue a warning notice before imposing sanctions Statutory regulator
s.206

Appeal

Amended 7 times
s.206

Injunctions

Amended 7 times
s.206

Records

Amended 7 times
Other duties (1) — Crown / regulator
  • Bank of England must record decisions and preserve records Statutory regulator

Part 6 — Banknotes: Scotland and Northern Ireland

s.214

Power to designate banks as “authorised banks”

Amended 1 time
s.215

Banknote regulations

Amended 1 time
Other duties (1) — Crown / regulator
  • The Treasury must create regulations for bank banknote operations Crown / Minister / Government department

Part 7 — Miscellaneous

s.231

Reports

Amended 1 time
Other duties (1) — Crown / regulator
  • HM Treasury must report to Parliament on financial support arrangements Crown / Minister / Government department
s.236

Review

Amended 1 time
Other duties (1) — Crown / regulator
  • The Treasury must review investment bank insolvency regulations Crown / Minister / Government department
s.256

State aid

Amended 2 times
s.256

Bank of England” and “Prudential Regulation Authority”

Amended 2 times

Part 8 — General

Browse 3 other sections in this Part — procedural / definitional / commencement
Read the full Act on legislation.gov.uk (opens in a new tab)

Official guidance

Authoritative sources published by regulators or government explaining this legislation.

Enforcement and responsible bodies

The regulators that administer or enforce this legislation.

FCA

Primary

Financial Conduct Authority

Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …

PRA

Prudential Regulation Authority

Part of the Bank of England. Prudentially regulates and supervises around 1,292 banks, building societies, credit unions, insurers, and major investment firms. …

Connected legislation

13 statutory instruments

These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.

Secondary legislation (13)

Explore more

Browse legislation

Find other UK business legislation with related guidance.

Regulators

Learn more about the bodies that enforce this legislation.