Regulation 2

in paragraph (1), for the words “members of the Committee of London and Scottish Bankers” there shall be substituted the words “ any of the the reference banks”;

by the insertion after paragraph (2) of the following:

“(3)

For the purposes of paragraph (1)—

(a)

the reference banks are the seven largest institutions—

(i)

authorised by the Bank of England under the Banking Act 1987^f2 and

(ii)

incorporated in and carrying on a deposit-taking business within the United Kingdom,

which quote a base rate in sterling;

(b)

the size of an institution is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before the period for which interest is payable begins.

(4)

In paragraph (3)(b), the reference to the consolidated gross assets of an institution is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985^f3.”.