Section 6E(5)

In carrying out a valuation required under subsection (1), the person carrying out the valuation must— make prudent assumptions as to possible rates of default and the severity of losses suffered by the bank, disregard potential financial assistance which may be provided by the Bank of England or the Treasury after the Bank has made any mandatory reduction instrument or exercised any stabilisation power (except for ordinary market assistance offered by the Bank on its usual terms), take account of the fact that— the Bank of England and the Treasury may recover expenses incurred in connection with the exercise of a stabilisation power under section 58(2)(b), the Bank of England and the Treasury may charge interest or fees in respect of any loans or guarantees provided to the bank after the Bank has made any mandatory reduction instrument or exercised any stabilisation power in respect of it.

← 4 · All articles · 6 →

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