Select Committee on Delegated Powers and Deregulation Eleventh Report


Delegated Powers in the Bank of England Bill
Treasury's Reserve Powers
Clause 19 provides that the Treasury may direct the Bank with respect to monetary policy if they are satisfied that such action is required by extreme economic circumstances and is in the public interest.
Transfer of Supervisory functions
Clause 23(2)   enables the Treasury to amend or revoke subordinate legislation as required in consequence of the transfer of functions.
Paragraph 1(5) of Schedule 4 allows the Treasury to exclude, modify or supplement the provisions of that paragraph relating to the continuity of exercise of the transferred functions and to make other transitional provisions.
Paragraph 1 of Schedule 6 gives the Financial Services Authority power to prescribe banking supervision fees.
Cash ratio deposits
Paragraph 1(2) of Schedule 2 empowers the Treasury to amend the categories of eligible institution (set out in paragraph 1(1)) which are required to maintain cash ratio deposits with the Bank.
Paragraph 2(2) of Schedule 2 enables the Treasury to define eligible liabilities for the purposes of determining an eligible institution's liability base, and to make provision about the calculation of any description of eligible liability.
Paragraph 5 of Schedule 2 makes provision for the Treasury to specify the value bands and the ratios applicable to them which are to be applied against each eligible institution's liability base for the purposes of calculating its depositable amount.
Paragraph 8 of Schedule 2 allows the Treasury to amend or replace paragraph 7, which specifies the benchmark rate of interest which is to be used for calculating the amount which an eligible institution must pay in lieu of deposit, where there is a shortfall between the amount it has on deposit with the Bank and its depositable amount.
Clause 17(4) enables the Treasury to specify which financial affairs the Bank may require an undertaking to provide information about for the purposes of its monetary policy functions
Clause 17(5) allows the Treasury to amend the list of undertakings set out in Clause 17(3) from which the Bank can require such information.
Paragraph 3(2) of Schedule 7 enables the Treasury to amend the Table in paragraph 3(1) specifying the authorities to whom the Bank may disclose information obtained by it by virtue of Clause 17(1) (monetary policy) or paragraph 9 of Schedule 2 (cash ratio deposits).
Paragraph 3(3) of Schedule 7 allows the Treasury to impose restrictions or conditions on disclosures to those authorities.

Closure of National Savings Stock Register
Clause 33 gives the Treasury power by order to close the National Savings Stock Register to the registration of gilts, and to provide for the transfer to the books of the Bank of the entries relating to gilts, as well as the transfer to the Bank of the associated rights and liabilities of the Director of Savings.
Clause 45 provides for the Act to come into force on such day as the Treasury may by order appoint.
Paragraph 3(7) of Schedule 4 provides for a scheme under that paragraph for the transfer of property, rights and liabilities consequent upon the transfer of supervisory function to come into force on such day as the Treasury may by order appoint.

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