Overview

This bill, the Bank Resolution (Recapitalisation) Bill, amends a previous bill concerning the resolution of failing banks. The amendments primarily focus on removing specific subsections within the original bill, altering the rules around how failing banks might be recapitalized (given new funds) by the government.

Description

The bill makes two key changes to the original Bank Resolution (Recapitalisation) Bill.

• Amendment 1: Removes subsection (3) of Clause 1. The exact content of this removed subsection isn't provided in the given text, making specific details unavailable. However, it likely concerned some aspect of the process for recapitalising failing banks.
• Amendment 2: Removes subsection (5) of Clause 8. Similarly, the provided text lacks the content of this removed subsection, preventing a detailed explanation. This likely relates to another element of the bank recapitalization process.

Without the full text of the original subsections, the precise effects of these amendments remain unclear. The amendments suggest a streamlining or alteration of the original bill's provisions relating to rescuing failing banks.

Government Spending

The impact on government spending is uncertain without knowing the content of the removed subsections. The amendments could potentially reduce or increase government expenditure depending on what provisions were deleted. No figures are provided.

Groups Affected

The groups affected include:

• Taxpayers: Changes to bank rescue provisions could affect the potential cost to taxpayers if a bank fails.
• Banks: The amendments will alter the conditions under which the government might intervene to prevent bank collapse. This directly impacts bank operations and stability.
• Financial Regulators: The changes affect the regulatory framework for handling failing banks.

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