LONDON, Sept 30 (Reuters) - 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 NatWest Markets.
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 new rules. (Reporting By Andrew MacAskill, editing by Sinead Cruise)