RBS sets date for ring-fencing of retail ops

Royal Bank of Scotland (RBS) has said the ring-fencing of its retail banking operations will take effect on 30 April.
Ring-fencing is intended to protect taxpayers during a financial crisis by separating the retail and investment arms of Britain's major banks.
This would allow the more risky investment divisions to fail without the bank needing state support.RBS, which is 73% owned by the taxpayer, has retail customers at brands including RBS, NatWest and Ulster Bank.The non-ring-fenced bank will be made up of clients from NatWest Markets, NatWest International, RBS International and Isle of Man Bank.RBS said customers should not see any disruption to services as a result of the changes, which will be made during the weekend leading up to 30 April.The news comes just days after Barclays became the first major bank to complete the process.Some 24 million customer accounts and €250bn of assets were moved into its newly-formed ring-fenced bank, Barclays Bank UK.
Barclays Bank UK is now separate from Barclays Bank, which offers products and services for larger corporate, wholesale and international clients.The retail bank will also have its own board and capital requirements.The reforms were conceived in 2011 by a commission led by Sir John Vickers, and have cost the five major banks - Barclays, HSBC, Lloyds Banking Group, RBS and Santander UK - billions of pounds to implement.Ring-fencing rules only apply to UK banks that hold more than €25bn in core deposits from individuals and small to medium-sized businesses.
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UK banks started working through the ring-fencing process last year and have until January next year to complete it.Lloyds has said its date for transfer is 28 May, while Santander and HSBC have dates in July, if approved by the High Court.
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