12.—(1) The core deposit level condition is that at any particular time (‘T’)—
(a)in the case of a UK deposit-taker which is not a member of a group, its average core deposit total is equal to or less than £25 billion;
(b)in the case of a UK deposit-taker which is a member of a group, the sum of the average core deposit totals for each member of the group that is a relevant group member is equal to or less than £25 billion.
(2) For the purpose of paragraph (1)(b) a group member is a relevant group member if—
(a)it is a UK deposit-taker; and
(b)it does not carry out the regulated activity of effecting or carrying out contracts of insurance as principal in accordance with a permission under Part 4A of the 2000 Act.
(3) Subject to article 13, the average core deposit total for a UK deposit-taker is determined as follows—
(a)calculate the total core deposits held by the UK deposit-taker at the end of each quarter in the core deposit calculation period to produce quarterly totals; and
(b)add those quarterly totals together and divide by the number of quarters in the core deposit calculation period.
(4) The core deposit calculation period is—
(a)in the case of a UK deposit-taker that has existed for three financial years or more, the period of three consecutive financial years of that UK deposit-taker which ends immediately before the start of the financial year in which T falls;
(b)in the case of any other UK deposit-taker, the period for which that UK deposit-taker has existed at T.
(5) If a UK deposit-taker holds core deposits in a currency other than sterling, the quarterly totals referred to in paragraph (3) must be calculated by converting financial amounts representing such deposits into sterling.
(6) The conversion must be made by reference to an appropriate spot rate of exchange as at the last day of the quarter to which a quarterly total relates.
(7) In this article a reference to a quarter is a reference to any complete quarter falling within a core deposit calculation period for a UK deposit-taker.