(1) The Bank of England Act 1998 is amended as follows.

(2) Omit section 6 and Schedule 2 (cash ratio deposits).

(3) Before section 7 insert -

"6A Bank of England levy

Schedule 2ZA makes provision for the Bank to impose a charge on financial institutions in connection with the pursuit of its financial stability and monetary policy objectives."

(4) Before Schedule 2A (financial policy committee) insert -

"Schedule 2ZA Bank of England levy

Section 6A

"The levy"

1

(1) The Bank may impose a charge on eligible institutions in accordance with this Schedule.

(2) The charge is to be known as the Bank of England levy (and is referred to in this Schedule as "the levy").

"Eligible institutions"

2

(1) For the purposes of this Schedule, an "eligible institution" is a person who, at any time during a levy year, is an authorised deposit-taker.