On 15 October 2024, HM Treasury (HMT) published a draft new chapter of the special resolution regime (SRR) code of practice (which sets out the tools and powers available under the Banking Act 2009) following the introduction of the Bank Resolution (Recapitalisation) Bill in Parliament.

The chapter sets out in draft details of the recapitalisation payment mechanism introduced by the Bill. HMT notes that the draft chapter may change, including as a result of any amendments made to the Bill during the parliamentary process and engagement with the Banking Liaison Panel.

The Government plans to issue a finalised version of the updated code in full when the Bill comes into force.