Regulation 4 Rates of interest

(1)

For the purposes of these Regulations, the appropriate rate of interest for a year (or part of a year) means the rate equivalent to one percentage point less than the arithmetic mean of the base rates quoted by the four largest members of the Committee of London and Scottish Bankers (“the reference banks”) and effective at close of business on the 15th March (or the next business day) of the preceding year; and if any of the reference banks fails to quote such a rate, the mean shall be determined by reference to the rates quoted by the other reference banks.

(2)

For the purposes of paragraph (1)—

(a)

in calculating the rate a part of a whole (if any) shall be calculated to two decimal places only—

(i)

adding one hundredth where (apart from this sub-paragraph) there would be more than five thousandths; and

(ii)

ignoring the thousandths where (apart from this sub-paragraph) there would be five, or less than five, thousandths; and

(b)

the size of a bank shall be determined by reference to its total consolidated assets as shown in its last audited end-year accounts before the relevant 15th March.