A category of financial institutions as defined by the Banking Act 1979, which divided banking into recognized banks, licensed deposit takers, and exempt institutions. To qualify for authorization, the licensed deposit taker had to satisfy the Bank of England that it conducted its business in a prudent manner. The aim of the Act was to bring more institutions under the supervision of the Bank of England. As the Banking Act 1987 established a single category of authorized institutions eligible to carry out banking business the distinction has now disappeared.
Subjects: Financial Institutions and Services.