Member

However, the Government’s view is that having a specific additional objective related to the mechanism could impede and complicate the use of the mechanism in a way that would not best serve the public interest. When managing a firm failure and considering use of the new mechanism, the Bank of England will likely need to take a decision at pace in a highly complex and uncertain environment. In practical terms, it may not have the time or the information necessary to make a full assessment of the impact of using the new mechanism on growth and competitiveness. This is normally achieved by a careful process of consultation and deliberation, something that is unlikely to be possible in this scenario. Therefore, having a new obligation, but not necessarily having sufficient time or information to consider it in detail, would likely increase risks to the Bank in using the new mechanism, even if it became quite apparent that it was in the public interest.