The UK ring-fencing legislation, which stipulates the separation of essential banking services from investment banking services, will take effect from 1 January 2019.
The lender proposes to launch an intermediate holding company for the ring-fenced banks named as NatWest Holdings at the beginning of 2017.
The holding company will comprise National Westminster Bank, Adam & Company and Ulster Bank Ireland DAC.
Initially, NatWest Holdings will be a subsidiary of RBS but it will become a direct subsidiary of RBS Group by the end of 2018.
RBS chief executive Ross McEwan said: “Our proposed future structure under the ring-fencing legislation and our brand strategy are key elements of the bank we are becoming.
“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 and what we stand for: a bank that is focused on its customers.”
As part of the changes, Adam & Company will be renamed The Royal Bank of Scotland plc. However, the Adam brand and activities will remain unchanged.
Its Corporate & Institutional Banking (CIB) activities will be in a non-ring-fenced bank called as NatWest Markets.
The bank said that the proposed ring-fenced structure is subject to additional regulatory, board and other approvals as well as employee information and consultation procedures, among other factors.
National Westminster Bank will be a ring-fenced bank and will continue to operate under the NatWest brand, catering to its personal, private, business and commercial customers in England and Wales and our customers in Western Europe.
In Northern Ireland and the Republic of Ireland, the bank will continue to operate under the existing Ulster Bank and Ulster Bank Ireland brands and legal entities.
Currently, the UK treasury holds 73% stake in RBS.
Image: RBS Building, 250 Bishopsgate, London. Photo courtesy of RBS.
