BKLM242200 - Relevant entities and groups: banking groups: conditions to be met to be a banking group: Condition B
Paragraph 12(3) of Schedule 19 - Condition B
This is met where the ultimate parent is a UK or foreign investment entity (see BKLM242500) and the group includes at least one ‘UK resident bank’ (see BKLM243000) or a ‘relevant foreign bank’ (see BKLM245000).
To meet this condition the legislation (Paragraph 12(6)) requires that the UK resident bank or relevant foreign bank is not a subsidiary of any other entity apart from an investment entity (or entities). In other words, there are no trading entities between the bank and the ultimate parent.