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Banking Bill

The noble Baroness suggested on the previous amendment that I was subject to bureaucratic priorities; on this one, I share her objective, which is not bureaucracy, but openness. I therefore have some sympathy with her amendment. It is not necessary to place a statutory requirement on the Bank of England to publish an annual report on the matter for which the Financial Stability Committee is responsible—that is, financial stability—because the Bank of England already produces a report on it. Since 1996, the Bank has published a half-yearly Financial Stability Report, which aims to identify the major downside risks to the UK financial system and thereby help financial firms, authorities and the wider public in managing and preparing for them. The Bill, and Clause 228 in particular, seeks to strengthen and enhance the Bank of England’s role in protecting the stability of the UK’s financial system. I would expect the Bank, in the light of this greater remit, to provide even further information in the bi-annual report. It is not particularly helpful, however, to state in the Bill to whom and how often the Bank must make a report on its activities in this area. A general requirement already exists for the Bank to make an annual report, which includes a review of its performance in relation to its objectives and strategy, under Section 4(3) of the Bank of England Act 1998. I share the noble Baroness’s view on the importance of transparency. If the provisions were not already present in legislation, I would accept her amendment. However, I hope that she will accept that it is unnecessary because the provisions are already there and that she can feel confident in withdrawing it.