Section 6E(4)

The purpose of a valuation carried out pursuant to subsection (1) is to— inform the decision as to— whether the conditions for the making of a mandatory reduction instrument or the exercise of a stabilisation power is satisfied, which stabilisation option should be employed, the extent to which any shares, capital instruments or eligible liabilities should be cancelled, diluted, transferred, written down or converted through the use of a mandatory reduction instrument or a resolution instrument, what assets, liabilities or securities (if any) are to be transferred by a property transfer instrument or a share transfer instrument, and the value of any consideration to be paid to the bank or the owners of the securities for any assets, liabilities or securities so transferred, and ensure that the full extent of any losses on the assets of that bank is appreciated at the time the Bank of England makes a mandatory reduction instrument or exercises a stabilisation power.

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Source: legislation.gov.uk · retrieved 2026-09-04