House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
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Other Bills before Parliament

17

House of Commons

Tuesday 4th November 2008

Public Bill Committee Proceedings

Banking Bill

[Ninth and Tenth Sittings]

Clause 1 Agreed to.

Ian Pearson

Agreed to  87

Clause  2,  page  2,  line  28,  at end insert—

‘( )
Where a stabilisation power is exercised in respect of a bank, it does not cease to

be a bank for the purposes of this Part if it later loses the permission referred to

in subsection (1).’.

Clause, as amended, Agreed to.

Ian Pearson

Agreed to  88

Clause  3,  page  3,  line  1,  leave out from ‘assistance”’ to end of line 2 and insert ‘has

the meaning given by section [“Financial assistance”].’.

Clause, as amended, Agreed to.

Mr Mark Hoban

Withdrawn  77

Clause  4,  page  3,  line  19,  at end insert ‘; and for the avoidance of doubt, this

includes ensuring—

(i)
continuity of service; and

(ii)
unrestricted access to deposits.’.

Mr Colin Breed

Dr John Pugh

Not called  74

Clause  4,  page  3,  line  19,  at end insert—

Public Bill Committee Proceedings: 4th November 2008
18

Banking Bill, continued

‘(6A)
Objective 3A is to protect and safeguard the value of the enterprise.’.

Mr Mark Hoban

Not called  78

Clause  4,  page  3,  line  20,  at end insert ‘and to ensure that the expenditure of any

public or private funds is done in an economically efficient manner.’.

Mr Mark Hoban

Not called  76

Clause  4,  page  3,  line  22,  at end insert—

‘(8A)
Objective 6 is to protect the interest of creditors.

(8B)
Objective 7 is to avoid distorting competition amongst banks.’.

Mr Mark Hoban

Not called  79

Clause  4,  page  3,  line  24,  at end add—

‘(10)
In respect of Objective 7, competition law shall apply to a bank, whether it is

wholly or partly owned or controlled by the Government, including a bank to

which sections 9 and 12 apply.

(11)
Where a bank is wholly or partly owned or controlled by the Government and

where section 214 applies, the bank is prohibited from using its favourable

position or Government support to its commercial advantage and thereby to

prevent, restrict or distort competition in the market for financial services as a

whole, or on a product by product basis.

(12)
For the purposes of subsection (10) competition law includes the provisions of the

Competition Act 1998 and the Enterprise Act 2002, and European Community

law competition provisions.

(13)
For the purposes of subsections (10) and (11) ownership or control shall be

determined by reference to sections 26 and 29 of the Enterprise Act 2002 and by

reference, where Community law applies, to the Council Regulation 130/2004

(the European Merger Regulations).’.

Clause Agreed to.

Mr Mark Hoban

Question proposed  81

Clause  5,  page  3,  line  35,  at end insert—

‘(ca)
how to determine whether the threshold conditions under section 41(1)

of the Financial Services and Markets Act 2000 will be breached,’.

[Adjourned till Thursday at 9.00 a.m.