LONDON, Sept 30 Royal Bank of Scotland
announced on Friday a sweeping overhaul of its structure and
banking brands as it outlined plans to separate its retail
operations from riskier parts of its business by 2019.
The lender said its ring-fenced bank would be called NatWest
Holdings, comprising its core NatWest, Coutts & Co, Ulster Bank
Limited and Ulster Bank Ireland DAC brands.
Its private bank, Adam & Company, will be renamed Royal Bank
of Scotland PLC as part of the changes, while its Corporate and
Institutional Banking business and its Channel Islands
operations will be held in a non ring-fenced entity called
The changes will see the bank's historic Royal Bank of
Scotland retail brand confined largely to Scotland.
The government-ordered ring-fencing initiative aims to avoid
a repeat of the 2008 financial crisis, when banks' bad trading
bets threatened to sink ordinary depositors and mortgage
borrowers, leading to massive taxpayer-funded bailouts.
The new ring-fenced businesses, which will be funded and
capitalised separately, must include UK retail banking and small
business customers and most simple banking transactions.
Big global corporate customers and most investment banking
activities will be held in a separate entity.
RBS, which is 73 percent owned by the British taxpayer, is
the latest bank to announce how it plans to reform its business
to comply with the changes, recommended by the Vickers
Commission in 2011.
HSBC outlined similar plans to relocate its UK
business to Birmingham last year, while Barclays
overhauled its operating structure in March to create two core
divisions, including Barclays UK, to aid its compliance with the
(Reporting By Andrew MacAskill, editing by Sinead Cruise)