Commentary Part 4 – Collaboration between Treasury and Bank of England, Fca Or Pra Section 61: Treasury power of direction
515.Section 61 confers on the Treasury a power to give a direction to the Bank relating to the provision by the Bank of financial assistance to financial institutions, the exercise by the Bank of any of the stabilisation powers (as defined by section 1(4) of the Banking Act 2009) or the exercise of the Bank’s powers under Part 3 of the Banking Act 2009 (the bank administration regime). The power must have become exercisable as described in section 60. A direction may not be given in relation to the provision by the Bank of ordinary market assistance. In general, ordinary market assistance means the assistance provided by the Bank under its normal published frameworks. The Treasury may only give a direction if the direction is necessary to resolve or reduce a serious threat to the stability of the financial system of the United Kingdom, or (where the power of direction is exercisable by virtue of qualifying financial assistance having been provided) if the direction is necessary to protect the public interest where the qualifying financial assistance was provided for the purpose of resolving or reducing a serious threat to the stability of the financial system in the United Kingdom.