Lord Myners – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Myners on 2016-05-10.

To ask Her Majesty’s Government whether British banks or the public purse could be compelled to participate in a scheme to rescue a failing bank based in the Eurozone to make a new contribution of equity, accept haircuts on assets or be forced into debt for equity conversions.

Lord O’Neill of Gatley

The Government has ensured that the UK will never be required to pay for any future Eurozone bail outs.

The Bank Recovery and Resolution Directive (BRRD) requires Member States to put in place a bail-in tool, which will allow resolution authorities to write down liabilities in a failing bank and convert their debt instruments into equity. The BRRD represents an important step forward in ensuring that the EU effectively addresses the risks posed by the banking system.