MPs support proposed small banks failure law

A PROPOSED law to give the Bank of England (BoE) a new tool to manage the failure of smaller banks has been supported by MPs.

- 

Treasury minister Emma Reynolds said the Bank Resolution (Recapitalisation) Bill would ensure taxpayers “aren't left on the hook” when a bank collapses. The Bill would enable the BoE to direct the Financial Services Compensation Scheme to make a payment to a struggling bank to recapitalise it, with the costs covered by increases to a levy paid by the industry.