Our legislators fully understood that the Bank needed more specific provisions in the banking legislation itself given the systemic importance of banks, and the legislative amendments were approved illico presto. The new provisions are quite wide-ranging. They allow a financial institution to restructure its business with the approval of the central bank.
They also empower the central bank to direct a bank to restructure its operations. These provisions make the restructuring process clear, leaving little room for controversy or for differing interpretations. When Barclays petitioned the court under the Companies Act, there had been different interpretations of the proper procedure to be followed. Objections were raised by some parties.