§ Mr. Wilsonasked the Chancellor of the Exchequer what is the current position regarding progress towards recognition of the Trustee Savings bank under the Banking Act.
§ Mr. Ian Stewart[pursuant to his reply, 13 December 1985, c. 806]: Though the central Trustees Savings Bank Limited is a recognised bank under the 1979 Act the trustees savings banks themselves are exempted by schedule 1 of that Act from the prohibition on deposit-taking in section 1 of the Act. So long as they remain exempt, therefore, they do not require recognition. They are however supervised by the Bank of England on an informal basis on behalf of the Treasury, and in their regular prudential discussions the bank and the TSBs have considered future authorisation of the proposed future TSB companies.