Part 6: Miscellaneous Bank of England levy Section 70: Bank of England levy
This section amends the Bank of England Act 1998 to repeal the Cash Ratio Deposit (CRD) scheme and to introduce new provisions for the Bank to impose a charge on financial institutions in connection with the pursuit of its financial stability and monetary policy objectives.
	Subsection (2) omits section 6 (Cash ratio deposits) of, and Schedule 2 to, the Bank of England Act 1998. Together these omissions repeal the CRD scheme. Subsections (3) and (4) insert the new section 6A and Schedule 2ZA into the Bank of England Act 1998, establishing the Bank of England levy, which will replace it.
	Paragraph 1 of Schedule 2ZA will give a new power to the Bank to impose a charge on eligible institutions, known as the Bank of England levy. The remainder of the Schedule makes provision for how this power may be exercised.
	The charge may be levied on ‘eligible institutions’, which is defined by paragraph 2 broadly as UK deposit-taking institutions (banks and building societies) authorised under FSMA 2000. HM Treasury will have the power to amend this definition by regulations.
	Paragraph 4 requires the Bank to: 1) determine which of its policy functions it intends to fund (in whole or in part) using the levy; and, 2) determine the amount it reasonably considers it requires in connection with the funding of those functions, for each levy year (which is defined as a period of 12 months in paragraph 3). Here the Bank’s policy functions refers to functions exercised by the Bank in pursuit of its monetary policy and financial stability objectives. The Bank will also be required to publish these determinations.
	Paragraph 5 provides that the amount of the levy that an individual eligible institution is liable to pay must be determined by the Bank in accordance with regulations made by HM Treasury. These regulations will set out how the levy is to be calculated and it is intended that they will be reviewed at least every five years. The provision also gives HM Treasury the power to confer discretion on the Bank to determine certain specified matters. Paragraph 6 sets out the process by which the Bank will notify individual eligible institutions of the amount of levy they must pay each levy year.
	Paragraphs 7 and 8 set out what will happen if a levy is not paid and how the Bank may seek to recover unpaid amounts.
	Paragraph 9 gives the Bank powers to request information which it needs in order to operate the levy scheme.
	Paragraph 10 sets out the provisions concerning the making of secondary legislation. In making regulations under Schedule 2ZA, HM Treasury must consult the Bank and any others who appear to HM Treasury to represent those likely to be affected by the regulations. It must also have regard to the financial needs of the Bank. The provision also sets out the parliamentary procedure required for exercising the regulation making powers.