Financial Services (Banking Reform) Bill — New Clause 9 — Financial Sector — Target Ratio of Liabilities to Assets — Role of Bank of England — 8 Jul 2013 at 19:45
Rehman Chishti MP, Gillingham and Rainham voted against requiring the Treasury to set a target for the overall ratio of liabilities to assets in the UK financial system and to require the Bank of England to report on action taken to meet the target.
The majority of MPs voted against requiring the Treasury to set a target for the overall ratio of liabilities to assets in the UK financial system and to require the Bank of England to report on action taken to meet the target.
MPs were considering the Financial Services (Banking Reform) Bill. The proposed new clause rejected in this vote was New Clause 9 titled Leverage ratio.
The rejected new clause would have amended section 9D of the Bank of England Act 1998 which states the The Treasury may by notice in writing to the Financial Policy Committee [of the Bank of England] specify what the economic policy of Her Majesty’s Government is to be taken to be.
The amendment rejected in this vote sought to require this notice to include a leverage target, a target for a bank's ratio of its assets to equity capital, (equity capital being the value of its assets, minus liabilities). stating:
- The notice in subsection (1) shall include a target for the overall leverage of the UK’s financial system, to encompass also the activities of foreign financial institutions and non-bank originators of credit.”
The rejected amendment also provided for a report to be made, three months after the notice, stating:
- (a)any action that the Committee has taken to regulate leverage in the financial system to the identified target in a manner consistent with maintaining adequate credit availability and growth in the economy, or
- (b) the Committee’s reasons for not intending to act to regulate leverage in the financial system to the identified target
-  Parliament's webpage on the Financial Services (Banking Reform) Bill
-  Proposed New Clause 9, Official Record, House of Commons, 8 July 2013
-  Version of the Bank of England Act 1998 from the Bank of England including Section 9D
Votes by party, red entries are votes against the majority for that party.
What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.
What is Turnout? This is measured against the total membership of the party at the time of the vote.
|Party||Majority (No)||Minority (Aye)||Both||Turnout|
|Con||232 (+1 tell)||0||0||76.4%|
|Lab||0||200 (+2 tell)||0||78.3%|
|LDem||38 (+1 tell)||0||0||69.6%|