Member

I will set out the detail of the resolution regime and remind the shadow Minister and others why credit unions are not involved in this case. Under the resolution regime, the Bank of England has a set of powers it can use to manage the failure of banking institutions in order to protect financial stability and public funds. In order for the Bank of England to use these powers, certain conditions must be met, including that resolution action is necessary and in the public interest. It is unlikely that these conditions would be met in the case of credit union failures, given their size and the reduced likelihood of contagion if they fail. It is therefore appropriate and proportionate that these firms are out of scope of the resolution regime and placed into insolvency when they fail instead.