Draft Bank Recovery and Resolution Order 2016 Draft Bank of England Act 1998 (Macro-Prudential Measures) Order 2016

Roger Mullin Excerpts

Monday 5th December 2016 General Committees

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

I shall be brief. I have just a couple of questions for the Minister. I will say at the outset, however, that if the risks of failure are to be mitigated, the key issue to address is the culture in the institutions, as we have argued for a long time, and that cannot be addressed by regulation alone.

I want to come back to the opening remarks of the Minister when he talked about macro-prudential regulation and risks. Will he clarify exactly what assessment of risk has been taken post-Brexit? There are two components of risk that I am particularly interested in. First, what is the estimate of the probability of increased risk of failure? Secondly, what would the nature of that failure look like post-Brexit?

I support what the hon. Member for Stalybridge and Hyde said about the need for oversight of the appointment of directors, and I would like to know more about the Government’s thinking in that regard.