(1) The Banking Act 2009 is amended as follows.

(2) In section 207(b) (overview of Part 6) for the words from "banks" to the end substitute "authorised banks (see section 210)."

(3) In section 210 (authorised bank) -

(a) the words from "a bank" to the end become paragraph (a);

(b) at the end of that paragraph insert "(unless by virtue of regulations under section 214A it is no longer an authorised bank for the purposes of this Part), or";

(c) after that paragraph insert -

"(b) a bank which is designated as an authorised bank for the purposes of this Part by regulations under section 214A(1)(a)."

(4) In section 213 (saving for existing issuers) -

(a) the existing text becomes subsection (1);

(b) in that subsection, after "bank" insert "within section 210(a)";

(c) after that subsection insert -

"(2) An authorised bank within section 210(b) may issue banknotes, but only -

(a) in accordance with the provisions of this Part, and