RBS Introducing New Intermediate Holding Company for Ring-Fenced Entities Early Next Year

By Ian Walker

LONDON--Royal Bank of Scotland Group PLC (RBS.LN) said Friday it continues to work through its ring-fencing plans, and will introduce a new intermediate holding company to be called NatWest Holdings Ltd. at the beginning of 2017.

As previously announced, RBS, which is 73%-owned by the U.K. Government, will place most of its U.K. and Western European banking business in ring-fenced banking entities into the new holding company.

Corporate and institutional banking activities will be in a non-ring-fenced bank, and RBS International business will be placed outside the ring-fence, both as subsidiaries of the Royal Bank of Scotland Group, RBS said.

Under U.K. ring-fencing legislation, Banks are required to separate essential banking services from investment banking services from Jan. 1, 2019.

Chief Executive Ross McEwan said: "The future ring-fenced structure of the bank is not only designed to be in compliance with the new regulatory requirements and objectives but will better reflect who we are as a bank."

Write to Ian Walker at [e-mail]<mailto:[e-mail]>; @IanWalk40289749

(END) Dow Jones Newswires

September 30, 2016 02:44 ET (06:44 GMT)

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