Section 1
The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties. The special resolution regime consists of— the five stabilisation options, the bank insolvency procedure (provided by Part 2), and the bank administration procedure (provided by Part 3). The five “stabilisation options” are— transfer to a private sector purchaser (section 11), transfer to a bridge bank (section 12), transfer to an asset management vehicle (section 12ZA), the bail-in option (section 12A), and transfer to temporary public ownership (section 13). Each of the five stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are— the resolution instrument powers (sections 12A(2) and 48U to 48W), the share transfer powers (sections 15, 16, 26 to 31 and 85), and the property transfer powers (sections 33, 41A and 42 to 46). the third country instrument powers (sections 89H to 89J). Each of the following has a role in the operation of the special resolution regime— the Bank of England, the Treasury, the Prudential Regulation Authority, and the Financial Conduct Authority. The Table describes the provisions of this Part.
Source: legislation.gov.uk · retrieved 2026-09-04