Banking Act 2009
The Banking Act 2009 (c 1) is an Act of the Parliament of the United Kingdom that entered into force in part on the 21 February 2009 in order, amongst other things, to replace the Banking (Special Provisions) Act 2008. The Act makes provision for the nationalisation of banks, amends the law on bank insolvency and administration, and makes provision about the Financial Services Compensation Scheme. It also makes provision about the regulation of inter-bank payment schemes (e.g. BACS), amends the law on the issue of banknotes by Scottish and Northern Irish banks, and makes other miscellaneous amendments to the law on banking.
|Long title||An Act to make provision about banking.|
|Citation||2009 c 1|
|Introduced by||Alistair Darling (Chancellor of the Exchequer) and Lord Davies of Oldham|
|Territorial extent||England and Wales|
(Sections 253 and 254 extend to Scotland only)
|Royal assent||12 February 2009|
|Commencement||Certain provisions on 21 February 2009|
Status: Current legislation
|History of passage through Parliament|
|Text of statute as originally enacted|
|Revised text of statute as amended|
Part 6 of the Act specifically deals with the right of certain commercial banks in Scotland and Northern Ireland to issue their own private banknotes, repealing the Bank Notes (Scotland) Act 1845, the Bankers (Ireland) Act 1845 and the Bankers (Northern Ireland) Act 1928. The 2009 Act empowers HM Treasury to control banknote issue more strictly, requiring commercial note-issuing bank to maintain backing assets so that, in the event of the commercial failure of a bank, the value of their banknotes would be protected.
The Act additionally prohibits the issue of banknotes by any other banks other than those authorised under the 1845/1928 legislation and the Bank of England, and provides that, if a commercial bank decides to discontinue the issuing its own banknotes, it then irrevocably loses its note-issuing privileges.
- The citation of this Act by this short title is authorised by section 265 of this Act.
- "Part 6: Banknotes: Scotland and Northern Ireland". Banking Act 2009 - Explanatory Notes. HM Government/National Archives. Retrieved 3 November 2011.