RBS Will Move Assets to Netherlands in Early March if Brexit Talks Fail
07 December 2018 - 2:23AM
Dow Jones News
By Adam Clark
Royal Bank of Scotland Group PLC (RBS.LN) said Thursday that it
is preparing to transfer 13 billion pounds ($16.5 billion) of
assets and liabilities to a Dutch subsidiary by early March in case
of a disorderly Brexit.
The British lender said it expects around 30% of the customers
of its investment banking arm, NatWest Markets, to be transferred
to the Dutch unit and will move existing transactions by March 4 if
faced with a "immediate loss of access to the European single
market."
RBS said it has designed the transfer in a flexible manner so it
can respond to any political changes in relation to U.K.'s expected
exit from the European Union on March 29. The move underlines the
uncertainty facing British businesses in planning for Brexit, as
the U.K. leaving the bloc with no trade deal, or entering a
transition period, or even continuing as part of the EU all remain
potential options.
"During a transition period, the move of non-UK EEA [European
Economic Area] customers to NatWest Markets N.V. may be more
gradual and subject to further political developments," RBS
said.
As a domestic-focused lender, RBS faces less potential
disruption from Brexit than many of its peers. Last week, lobby
group Frankfurt Main Finance estimated London will lose up to 800
billion euros ($907 billion) in assets by March, with 30 banks and
financial firms choosing to set up their new EU headquarters in the
German city.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
December 06, 2018 10:08 ET (15:08 GMT)
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