Bank Resolution (Recapitalisation) Act 2025

The Bank Resolution (Recapitalisation) Act 2025 establishes a legal framework enabling the UK authorities to recapitalise failing banks during financial crises by injecting public funds or converting debt into equity. This allows the government and regulators to stabilise systemically important banks without requiring full nationalisation, keeping them operational while protecting essential financial services. The act defines the conditions under which recapitalisation can occur, who decides to deploy it, and what protections exist for taxpayers and other stakeholders.