Banking Act 2009

Last updated

Banking Act 2009 [1]
Act of Parliament
Royal Coat of Arms of the United Kingdom (Variant 1, 2022).svg
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
Scotland
Northern Ireland
(Sections 253 and 254 extend to Scotland only)
Dates
Royal assent 12 February 2009
Commencement Certain provisions on 21 February 2009
Status: Amended
History of passage through Parliament
Text of statute as originally enacted
Revised text of statute as amended

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.

Contents

Banknotes

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. [2]

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.

See also

Related Research Articles

<span class="mw-page-title-main">Banknotes of the pound sterling</span> Promissory notes denominated in pounds sterling

The pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, British Antarctic Territory, South Georgia and the South Sandwich Islands, and Tristan da Cunha.

<span class="mw-page-title-main">Banknotes of Ireland</span>

Ireland has a history of trading its own banknotes for several centuries, both when the whole of Ireland was one legal entity, and following partition of the island into the Republic of Ireland and Northern Ireland. Notes have been issued by individual banks and by state agencies of the Republic of Ireland and the United Kingdom. Currently, various commercial banks in Northern Ireland locally issue notes of the Pound sterling, while the Central Bank of Ireland, in the Republic of Ireland, issues local euro banknotes.

<span class="mw-page-title-main">Bank Charter Act 1844</span> United Kingdom legislation

The Bank Charter Act 1844, sometimes referred to as the Peel Banking Act of 1844, was an Act of the Parliament of the United Kingdom, passed under the government of Robert Peel, which restricted the powers of British banks and gave exclusive note-issuing powers to the central Bank of England. It is one of the Bank of England Acts 1694 to 1892.

<span class="mw-page-title-main">Bank of Scotland £5 note</span> Scottish banknote

The Bank of Scotland £5 note, also known informally as a fiver, is a sterling banknote. It is the smallest denomination of banknote issued by the Bank of Scotland. The current polymer note, first issued in October 2016, bears the image of Sir Walter Scott on the obverse and a vignette of the Brig o' Doon on the reverse. The polymer replaces a cotton note also featuring a portrait of Sir Walter Scott.

<span class="mw-page-title-main">Bank of Scotland £10 note</span>

The Bank of Scotland £10 note, also known informally as a tenner, is a sterling banknote. It is the second smallest denomination of banknote issued by the Bank of Scotland. The current polymer note, first issued in 2017, bears the image of Sir Walter Scott on the obverse and a vignette of the Glenfinnan Viaduct on the reverse.

<span class="mw-page-title-main">Bank of Scotland £20 note</span>

The Bank of Scotland £20 note is a sterling banknote. It is the third largest of five banknote denominations issued by the Bank of Scotland. The current polymer note, first issued in 2020, bears the image of Walter Scott on the obverse and a vignette of the Forth Bridge on the reverse.

The Bank of Scotland £50 note is a sterling banknote. It is the second largest of five banknote denominations issued by the Bank of Scotland. The current polymer note, first issued in 2021 bears the image of Walter Scott on the obverse and a vignette of the Falkirk Wheel and The Kelpies on the reverse.

The Bank of Scotland £100 note is a sterling banknote. It is the largest of five banknote denominations issued by the Bank of Scotland. The current polymer note, first issued in 2022 bears the image of Walter Scott on the obverse and Flora Murray on the reverse.

<span class="mw-page-title-main">The Royal Bank of Scotland £5 note</span> Sterling banknote

The Royal Bank of Scotland £5 note, also known as a fiver, is a sterling banknote. It is the second smallest denomination of banknote issued by The Royal Bank of Scotland. The current polymer note, first issued in 2016, bears an image of author Nan Shepherd on the obverse and a pair of mackerel on the reverse.

<span class="mw-page-title-main">The Royal Bank of Scotland £10 note</span> Sterling banknote

The Royal Bank of Scotland £10 note, also known as a tenner, is a sterling banknote. It is the third smallest denomination of banknote issued by The Royal Bank of Scotland. The current polymer note, first issued in 2017, bears a portrait of scientist Mary Somerville on the front and a pair of otters on the reverse.

<span class="mw-page-title-main">The Royal Bank of Scotland £20 note</span>

The Royal Bank of Scotland £20 note is a sterling banknote. It is the third largest denomination of banknote issued by The Royal Bank of Scotland. The current polymer note, first issued in 2020, bears the image of Catherine Cranston on the obverse and a vignette depicting a pair of Red Squirrels on the reverse.

The Royal Bank of Scotland £50 note is a sterling banknote. It is the second largest denomination of banknote issued by the Royal Bank of Scotland. The current polymer note, first issued in 2021 bears an image of Flora Stevenson on the obverse and two ospreys, a mackerel and lady's bedstraw on the reverse.

<span class="mw-page-title-main">The Royal Bank of Scotland £100 note</span> Scottish banknote

The Royal Bank of Scotland £100 note is a sterling banknote. It is the largest denomination of banknote issued by The Royal Bank of Scotland. The current cotton note, first issued in 1987, bears an image of Lord Ilay, one of the founders of the bank, on the obverse, and a vignette of Balmoral Castle on the reverse.

<span class="mw-page-title-main">The Royal Bank of Scotland £1 note</span> Scottish banknote

The Royal Bank of Scotland £1 note is a sterling banknote. The current cotton note, first issued in 1987, bears an image of Lord Ilay, one of the founders of the bank, on the obverse, and a vignette of Edinburgh Castle on the reverse.

<span class="mw-page-title-main">Clydesdale Bank £5 note</span>

The Clydesdale Bank £5 note, also known informally as a fiver, is a sterling banknote. It is the smallest denomination of banknote issued by the Clydesdale Bank. The current polymer note, first issued in 2015, bears an image of engineer William Arrol on the obverse and an image of the Forth Bridge on the reverse. It is the first fully polymer banknote to go into circulation in the United Kingdom.

<span class="mw-page-title-main">Clydesdale Bank £10 note</span> Scottish banknote

The Clydesdale Bank £10 note, also known informally as a tenner, is a sterling banknote. It is the second smallest denomination of banknote issued by the Clydesdale Bank. The current polymer note, first issued in 2017, bears an image of Scottish poet Robert Burns on the obverse and a vignette of the Old and New Towns of Edinburgh on the reverse.

<span class="mw-page-title-main">Clydesdale Bank £20 note</span>

The Clydesdale Bank £20 note is a sterling banknote. It is the third largest denomination of banknote issued by the Clydesdale Bank. The current polymer note, first issued in 2020, bears a portrait of the Scottish king Robert the Bruce on the obverse and an image of the islands of St Kilda on the reverse.

<span class="mw-page-title-main">Clydesdale Bank £50 note</span>

The Clydesdale Bank £50 note was a sterling banknote. Until its withdrawal it was the second largest denomination of banknote issued by the Clydesdale Bank. The last cotton note, first issued in 2009 bears a portrait of Elsie Inglis, founder of the Scottish Women's Hospitals, on the obverse and an image of the Antonine Wall on the reverse.

<span class="mw-page-title-main">Clydesdale Bank £100 note</span> Scottish banknote

The Clydesdale Bank £100 note is a sterling banknote. It is the largest denomination of banknote issued by the Clydesdale Bank. The current cotton note, first issued in 2009 bears a portrait of the designer and artist Charles Rennie Mackintosh on the obverse and images of the Heart of Neolithic Orkney on the reverse.

The Bank of England £100,000,000 note, also referred to as Titan, is a non-circulating Bank of England sterling banknote used to back the value of Scottish and Northern Irish banknotes. It is the highest denomination of banknote printed by the Bank of England. As both Scotland and Northern Ireland have their own currency issued by particular local banks, the non-circulating notes provide the essential link between those currencies and that of England, and security if a local issuing bank were to fail.

References

  1. The citation of this Act by this short title is authorised by section 265 of this Act.
  2. "Part 6: Banknotes: Scotland and Northern Ireland". Banking Act 2009 - Explanatory Notes. HM Government/National Archives. Retrieved 3 November 2011.