(1) In section 2 of the Banking Act 1987 (Board of Banking Supervision), for subsections (1) and (2) there is substituted-
''(1) There shall continue to be a committee known as the Board of Banking Supervision.
(2) The Board shall consist of-
(a) two ex officio members, namely, the Chairman of the Authority and the holder of such other office within the Authority as the Chairman of the Authority may designate for the purposes of this provision; and
(b) six independent members, that is to say, members appointed jointly by the Chancellor of the Exchequer and the Chairman of the Authority, being persons having no executive responsibility in the Authority.
(2A) The independent members shall elect one of their number to chair the Board."
(2) In that section, in subsections (3), (4), (6) and (7), for "Bank", wherever occurring, there is substituted "Authority".
(3) In Schedule 1 to that Act (Board of Banking Supervision), for "Bank", wherever occurring, there is substituted "Authority".