§ Mr. Wm. Ross
asked the Chancellor of the Exchequer what authority is required to carry on a business as a bank in the United Kingdom; whether a licence is required; and what are the conditions attached to any such licence.41W
§ Mr. Lawson
The Banking Act 1979 provides that it is an offence for a deposit-taking business to accept deposits unless authorised to do so by the Bank of England or exempt from the provisions of the Act. The Act establishes a two-tier system of authorisation—one tier comprises "recognised banks" and the other "licensed institutions". The criteria for recognition as a bank or for being licensed as a deposit-taking institution are set out in schedule 2 to the Act.