Member

As I said, I appreciate the intent behind the noble Baroness’s amendment. The Government have reflected on the points raised by her and other noble Lords at Grand Committee regarding scrutiny and transparency of the Bank of England’s actions, with respect to costs to industry. As I have mentioned at previous stages of this Bill, there are a number of important safeguards within the regime to ensure costs to industry are proportionate and affordable. Notably, the Bank of England must consult with the PRA when considering resolution action. The PRA plays an important role in the resolution process by determining what is affordable for the sector to be levied, and it will continue to have this role under the new mechanism. The PRA also has an important primary objective to ensure the safety and soundness of firms, meaning the affordability of any levies is something it would consider very carefully.