27.—(1) In sub-paragraph (2) of paragraph 4 (business to be conducted in a prudent manner) of Schedule 3 to the Banking Act (minimum criteria for authorisation), for the words “net assets” there shall be substituted the words “own funds”.
(2) For sub-paragraph (3) of that paragraph there shall be substituted the following sub-paragraphs—
“(3) The particular factors referred to above are—
(a)the nature and scale of the institution’s operations; and
(b)the risks inherent in those operations and in the operations of any other undertaking in the same group so far as capable of affecting the institution.
(3A) An institution shall not be regarded as conducting its business in a prudent manner unless it maintains or, as the case may be, will maintain own funds which amount to not less than ecu 5 million (or an amount of equal value denominated wholly or partly in another unit of account).”
(3) For sub-paragraph (10) of that paragraph there shall be substituted the following sub-paragraph—
“(10) In this paragraph 'ecu' and 'own funds' have the same meanings as in the Banking Coordination (Second Council Directive) Regulations 1992.”
(4) For paragraph 6 of that Schedule there shall be substituted the following paragraph—
“6.—(1) The institution will at the time when authorisation is granted to it have initial capital amounting to not less than ecu 5 million (or an amount of equal value denominated wholly or partly in another unit of account).
(2) In this paragraph 'ecu' and 'initial capital' have the same meanings as in the Banking Coordination (Second Council Directive) Regulations 1992.”