§ Mr. Heddle
asked the Chancellor of the Exchequer if he will seek to introduce amending legislation to give more adequate protection to depositors.
§ Mr. Lawson
The Banking Act, which received Royal Assent on 4 April 1979, sets up a statutory framework for the authorisation and supervision of deposit-taking institutions by the Bank of England. Most of the Act came into operation on 1 October 1979.
It is intended that part II, which sets up a scheme for the compensation of small depositors in the event of the failure of an authorised institution, will be brought into operation some six months after 1 October 1979.