CFM14070 | Understanding corporate finance: the legal and regulatory framework: regulated entities: banks: list of recognised banks

A list of companies or other entities that are recognised as banks is maintained by the Prudential Regulatory Authority (PRA).

Two main classes of institution qualify:

A person who has permission from the PRA, under Part 4 of Financial Services and Markets Act 2000 (‘FSMA 2000’), to carry on a regulated activity of accepting deposits (with exceptions set out in FSMA 2000)

EEA credit institutions with ‘passport rights’. When a firm sets up a branch in the UK, the regulatory authority in its home state sends a consent notice to the PRA. The PRA then authorises the firm (under paragraph 15 Schedule 3 FSMA 2000) to accept deposits in the UK through that branch.

CTA10/S1120 and ITA07/S991 also allow a relevant international organisation - defined as an international organisation of which the UK is a member - to be designated as a bank by Treasury order. SI1996/1179 designated the European Investment Bank.

In addition, CTA10/S1120 and ITA07/S991 ensures that the Bank of England (which is exempted from PRA regulation) is included within the definition of ‘bank’). The Bank of England is the central bank of the UK. Amongst other things its role is:

• maintain monetary and financial stability in the UK economy,

• act as banker to other banks,

• act as banker to the Government

• issue bank notes in England & Wales

• manage gold and foreign exchange reserves

For more information about the role of the Bank of England see its website at https://www.bankofengland.co.uk/