The UK Treasury announced that the European Commission has approved the break up and sale of some of the assets of the two major state owned banks.
The Treasury will provide an additional £25 billion to the Royal Bank of Scotland and almost £6 billion more to Lloyds. The arrangement will make the Royal Bank of Scotland more controlled by the government, with the percentage of public ownership increasing from 70% to 84%.
Lloyds will be no more accountable to the government, which owns 43% of the bank.
In return for government support, the Royal Bank of Scotland will sell 318 branches, 14% of its UK network and Lloyds will sell 600 branches, about 20% of its UK network.
The Royal Bank of Scotland is offering for sale businesses with 1.7 million clients, including 230,000 small business clients and £20 billion in assets. It is also required to sell its insurance businesses, plus its international merchant services business which processes debit and credit card payments, and its interest in its commodity trading business.
Lloyds is selling almost 5% of UK current personal accounts and about 19% of its mortgage assets.
Treasury said that the buyers must be small or new businesses to ensure diversity and competition.
As most of the developed world is now out of recession, and the UK is expected to have positive growth in the next quarter, this restructure will affect the small businesses that are expected to provide new jobs to reduce the current high employment rate.
We’re assisting UK small businesses by sending them prospective customers, at no cost to them, from our Local Search facility in our UK Business Directory. Most of the 1.6 million business listed in our directory are small firms.
Monte Huebsch, CEO
The Treasury will provide an additional £25 billion to the Royal Bank of Scotland and almost £6 billion more to Lloyds. The arrangement will make the Royal Bank of Scotland more controlled by the government, with the percentage of public ownership increasing from 70% to 84%.
Lloyds will be no more accountable to the government, which owns 43% of the bank.
In return for government support, the Royal Bank of Scotland will sell 318 branches, 14% of its UK network and Lloyds will sell 600 branches, about 20% of its UK network.
The Royal Bank of Scotland is offering for sale businesses with 1.7 million clients, including 230,000 small business clients and £20 billion in assets. It is also required to sell its insurance businesses, plus its international merchant services business which processes debit and credit card payments, and its interest in its commodity trading business.
Lloyds is selling almost 5% of UK current personal accounts and about 19% of its mortgage assets.
Treasury said that the buyers must be small or new businesses to ensure diversity and competition.
As most of the developed world is now out of recession, and the UK is expected to have positive growth in the next quarter, this restructure will affect the small businesses that are expected to provide new jobs to reduce the current high employment rate.
We’re assisting UK small businesses by sending them prospective customers, at no cost to them, from our Local Search facility in our UK Business Directory. Most of the 1.6 million business listed in our directory are small firms.
Monte Huebsch, CEO
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