As Safe as the Bank of England?

This paper seeks to analyse the legal implications of the recent decision by the liquidators of the Bank of Commerce and Credit International (BCCI), Touche Ross, to issue writs against the Bank of England claiming damages on behalf of a small, representative number of depositors. The writ alleges a failure to regulate BCCI properly in accordance with the banking legislation. The author examines the Bank of England's duties and functions under the banking legislation, reviews the case‐law which has examined the statutory powers of regulatory authorities in the financial field and assesses how successful the proposed action is likely to be. The action against the Bank of England is the latest in a range of options, designed to retrieve the significant losses suffered by the depositors in BCCI, which have been mooted since the bank collapsed.