LONDON, Sept 30 (IFR) - Royal Bank of Scotland is renaming
its corporate and institutional banking (CIB) as NatWest
Markets, a throwback to one of the leading securities firms of
The change is part of a restructuring by RBS to meet new
rules requiring UK banks to separate domestic retail banking
from riskier areas to better protect savers and the taxpayer.
The UK "ring-fencing" rules will be in place by 2019 and the
structural changes are proving complex and costly for all
Britain's major banks.
RBS said NatWest Markets will continue to offer financing,
rates and currencies to customers.
NatWest, which was bought by RBS in 2000, took advantage of
deregulation of the City of London and "Big Bang" in 1986 to
build one of the biggest securities firms in London.
County Bank, its merchant bank, bought stockbroking and
jobbing firms to create NatWest Investment Bank, which was
joined by corporate banking to form NatWest Markets in 1992. It
was particularly strong in fixed income.
But RBS has dramatically shrunk its investment bank by
cutting its country footprint, business lines and assets since
being rescued by the UK government in 2008. The taxpayer still
holds 73% of RBS.
RBS will put the majority of its UK and western European
banking business in ring-fenced banking entities under an
intermediate holding company. The CIB activities will be in a
non-ring-fenced bank alongside its international business.
Both will be subsidiaries of RBS Group, which will continue
to be the primary issuing entity for funding and capital raising
activities. RBS said it will announce any implications for debt
issued by RBS's entities in due course.
(Reporting by Steve Slater)