BKLM354200 - Chargeable equity and liabilities: netting: the entity and the counterparty: foreign banking groups

Paragraph 18 (8)-(14) of Schedule 19

For foreign banking groups, for the purposes of the netting the ‘entity’ is:

• a member of the relevant UK sub-group
• a UK resident entity which is a member of the relevant group but not a member of a relevant UK sub-group, or
• a non-UK resident entity which is a member of the relevant group and a member of a UK sub-group but not a member of a relevant UK sub-group.

The ‘counterparty’ must be neither an entity as described above nor a relevant foreign bank which is a member of the relevant group but not a member of a UK sub-group.