Finance
Bank of England Raises Threshold for Lenders to Make Resolution Plans
Published by Global Banking & Finance Review®
Posted on March 26, 2026
1 min readLast updated: March 26, 2026
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The Bank of England raised the retail deposit threshold for mandatory resolution planning from £50 billion to £100 billion, easing the burden on smaller lenders by exempting more from detailed break-up plans, while maintaining oversight for the largest, systemically important firms.
Bank of England Lifts Threshold on Resolution Plans for Small Lenders
Bank of England Adjusts Resolution Assessment Framework
Exemption for Small Lenders
LONDON, March 26 (Reuters) - The Bank of England said on Thursday that it would exempt more small lenders from its requirements to set out detailed plans on how they would be broken up in case of failure.
New Threshold for Retail Deposits
The BoE said that firms with less than 100 billion pounds ($134 billion) of retail deposits would in future be exempt from its Resolution Assessment Framework, up from 50 billion pounds currently.
Statement from BoE Deputy Governor
"A credible resolution regime needs to be robust, but it also needs to be responsive and proportionate. These changes reflect the reduced risks that smaller and less complex firms pose to UK financial stability, while ensuring that the largest firms remain resolvable," BoE Deputy Governor Dave Ramsden said.
($1 = 0.7491 pounds)
(Reporting by David Milliken, editing by Andy Bruce)
Key Takeaways
- •Resolution Assessment Framework now applies only to banks or building societies with retail deposits of £100 billion or more, up from the previous £50 billion threshold (bankofengland.co.uk).
- •The change reflects a shift toward proportionate regulation—reducing requirements for smaller, less complex firms while ensuring big lenders remain resolvable in a crisis (kpmg.com).
- •The updated threshold aligns with broader reforms, including embedding MREL reporting into resolution processes and the rollout of the Strong and Simple regime for smaller firms by January 2027 (kpmg.com).
References
Frequently Asked Questions about Bank of England raises threshold for lenders to make resolution plans
1What change did the Bank of England announce for small lenders?
The Bank of England raised the threshold exempting lenders with less than 100 billion pounds in retail deposits from detailed resolution plans.
2What was the previous threshold for exemption from the resolution plan requirement?
Previously, only firms with less than 50 billion pounds in retail deposits were exempt.
3Why did the Bank of England adjust its resolution framework?
The BoE adjusted the framework to reflect the reduced risks posed by smaller, less complex firms while maintaining robust financial stability.
4Who provided remarks on the Bank of England's decision?
Deputy Governor Dave Ramsden commented on the changes, emphasizing the need for a robust yet proportionate resolution regime.
5Does the new rule apply to all UK banks?
No, only banks with retail deposits under 100 billion pounds are exempt; larger institutions remain subject to resolution planning.
