HC Deb 17 March 1988 vol 129 c672W
Mr. David Shaw

To ask the Chancellor of the Exchequer when section 38 of the Banking Act 1987 will come into force.

Mr. Lilley

The 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.