Section 96

In this section— Ground A is that a bank is unable, or likely to become unable, to pay its debts, Ground B is that the winding up of a bank would be in the public interest, and Ground C is that the winding up of a bank would be fair. The Bank of England may apply for a bank insolvency order only if— ... the PRA is satisfied that Condition 1 in section 7 is met, and the Bank of England is satisfied— that Condition 2 in section 7 is met, that the bank has eligible depositors, and that Ground A or C applies. The PRA may apply for a bank insolvency order only if— the Bank of England is satisfied that Condition 2 in section 7 is met, and the PRA is satisfied— that Condition 1 in section 7 is met, that the bank has eligible depositors, and that Ground A or C applies. The Secretary of State may apply for a bank insolvency order only if satisfied— that the bank has eligible depositors, and that Ground B applies. The sources of information on the basis of which the Secretary of State may be satisfied of the matters specified in subsection (4) include those listed in section 124A(1) of the Insolvency Act 1986 (petition for winding up on grounds of public interest).

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