Shadow Treasury Minister, Chris Leslie, responded on behalf of the Opposition.
The Bill passed second reading on question, without a vote. The Bill will now be considered by a public bill committee which will be brought to a conclusion by Thursday 18 April 2013.
Summary of the Financial Services (Banking Reform) Bill
The Bill builds on the recommendations of the Independent Commission on Banking (Vickers Commission) and on those made by the Parliamentary Commission on Banking Standards.
The Bill seeks to make further provision about banking and other financial services, including provision about the Financial Services Compensation Scheme; to make provision for the amounts owed in respect of certain deposits to be treated as a preferential debt on insolvency; and to make provision about the accounts of the Bank of England and its wholly owned subsidiaries.
It makes provision to separate the banking activities on which households and small and medium-sized enterprises depend, from wholesale or investment banking activities which may involve a greater degree of risk and expose an entity undertaking them to financial problems arising elsewhere in the global financial system.
Progress of the Bill
The Bill was introduced into the House of Commons on 4 February 2013.
Keep up to date with all the proceedings and documentation, including amendment papers, on the Financial Services (Banking Reform) Bill and find out how a bill becomes an Act of Parliament.
House of Commons Library analysis
The House of Commons Library produces briefing papers to inform MPs of key issues. The papers contain factual information and a range of opinions on each subject, and aim to be politically impartial. The Library has published a briefing paper for second reading.
What happens at second reading?
At second reading the House debates the whole principle of the bill. It usually takes place no sooner than two weekends after first reading.
The Member in charge or the Minister moves the motion ‘that the bill be now read a second time’. MPs then debate the bill.
At the end of the debate the Speaker determines whether there are any objections to the motion being debated and asks for the Ayes and Noes.
Members voice their opinion, and if no objections are made, the bill passes second reading without a vote. If the Speaker believes Members have voiced disagreement a division is called and a vote taken.
What happens after second reading?
The Bill will now go to a Public Bill Committee for consideration.