§ Mr. David ShawTo ask the Chancellor of the Exchequer when section 38 of the Banking Act 1987 will come into force.
§ Mr. LilleyThe Treasury has now made the commencement order for section 38 of the Banking Act 1987 to come into effect on 1 April. This section requires authorised institutions to report large credit exposures to the Bank of England. Exposures to a single borrower or group of connected borrowers above 10 per cent. of a bank's capital base must be reported after the event; proposed exposures above 25 per cent. of capital must be reported before the event. The main provisions of the Act came into force on 1 October 1987, and the date for implementing section 38 was announced at that time.