BANK OF ENGLAND: SUPERVISORY RESPONSIBILITIES

HL Deb 21 June 1993 vol 547 cc1-2WA

Lord Spens

asked Her Majesty's Government:

What percentage of the London banking market is the "prime responsibility" of the Bank of England in supervisory terms.

The Earl of Caithness

Of the 508 institutions entitled to accept deposits in the UK, 429 (84 per cent.) are authorised by the Bank of England, and supervised by it. The remaining 79 (16 per cent.) are UK branches of EC credit institutions, and fall to be supervised by their home state supervisors.

Lord Spens

asked Her Majesty's Government:

Whether, following the implementation of the Second Banking Co-ordination Directive, the Bank of England has any supervisory role in the regulation of subsidiaries or branches of overseas banks.

The Earl of Caithness

Following implementation of the directive. the Bank of England remains responsible for the prudential supervision of UK incorporated subsidiaries of foreign banks, and of the UK branches of banks incorporated outside the EC. The supervisor in the relevant home state has prime responsibility for supervising branches of EC banks which operate in the UK by virtue of the directive. The Bank does however retain some supervisory functions in relation to those branches, in particular, responsibility for monitoring liquiditty, in cooperation with the home state supervisors. The Bank is also expected to collaborate with the home state authorities on supervising market risks.

Lord Spens asked Her Majesty's Government:

Whether, following the implementation of the Second Banking Co-ordination Directive, the Bank of England has any role in the approval of management and directors of London-based subsidiaries or branches of overseas banks.

The Earl of Caithness

The Bank of England. is responsible for the prudential supervision of UK incorporated subsidiaries of foreign banks and of the UK branches of banks incorporated outside the EC. That responsibility includes monitoring the fitness and properness of the directors and managers of institutions concerned. The Bank's supervisory role in relation to branches of EC banks operating in the UK by virtue of the Second Banking Co-ordination Directive is much more limited.