Part IV The UK Resolution Regime, 14 Property Transfers and Bail-in under the Banking Act

Subject(s):

Bank resolution and insolvency — Credit risk — Equity — Shares

This chapter discusses the stabilization process undergone by banks under resolution, as set forth by the UK Banking Act 2009 (BA). To give effect to the stabilization options, the BA employs four basic powers (‘Stabilization Powers’) as follows: the power to make a share transfer instrument; the power to make a share transfer order; the power to make a Property Transfer Instrument; and the power to make a resolution instrument. To supplement these basic powers, the BA gives the power to make a compensation scheme order, a resolution fund order, or a third-party compensation order. In addition, the BA contains provisions governing the continuity of services and facilities provided to a bank by members of its group.