Part VI Bank Group Supervision, 24 Group Supervision
- Supervision — UK Financial Services Authority (FSA) — Bonds
24.01 At first glance the necessity for the supervision of banking groups—as opposed to banks themselves—is not obvious. There is no such thing as a creditor of a group—each creditor is a creditor of a particular legal entity, and in the case of depositors that legal entity is the relevant authorized bank. Provided that the capital rules are applied at the level of that authorized entity, it should have sufficient capital to ensure that those depositors are paid come what may, and no other group member will have any call on its assets until its own creditors are...