RBS fears bank ring-fence could slow down its recovery
THE INCOMING bank ring-fence to split investment and retail banking activities could hurt RBS’ customers, the lender warned in its full-year results.
RBS’ management last week set out plans to restructure the bank and get it back to profit.
But it also set out risks to that programme, including the sustained wave of regulation.
“Certain regulatory measures introduced in the UK and in Europe relating to ring-fencing of bank activities may affect the group’s borrowing costs, may impact product offerings and the viability of certain business models and require significant restructuring with the possible transfer of a large number of customers between legal entities,” the bank’s results said.
Small business groups have been particularly concerned that they will find it hard to access derivative products, including interest rate and foreign exchange hedges, under the new setup.