Banknote issue arrangements in Scotland and Northern Ireland: a consultation document
It is the intention of the Government to introduce a Bill, if Parliamentary time allows, that will modernise the arrangements under which note issuing banks in Scotland and Northern Ireland issue banknotes.
This Bill will principally seek to:
Require all issuing banks to hold sufficient and appropriate note-covering assets at all times, thereby creating a level playing field for all institutions with respect to bank note supply;
Strengthen the regulatory framework, including the transfer of current administrative responsibilities from the Commissioners for Revenue and Customs to the Bank of England; and,
Ensure that note holders, as creditors, can obtain value for their notes.
The proposal to protect note holders would involve a change in their relative status, in the event of the insolvency of the issuing bank, compared with other creditors. This consultation exercise is intended to assist the Treasury in finalising the most appropriate way of achieving the policy aim of ensuring that, in the unlikely event of the insolvency of an issuing bank, note holders are protected.
The deadline for all responses to this consultation was extended to Friday 14 October 2005.
The written consultation exercise was supplemented by meetings with key stakeholders. In light of the responses the Treasury requested supplementary information and is conducting follow up discussions on points of detail with some of the respondents. The Treasury will respond fully to the consultation by the spring, when it will have considered all responses fully.
Banknote issue arrangements in Scotland and Northern Ireland: a consultation document is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page .
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