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New rules set to split apart Britain’s biggest lenders have led to RBS putting around £200m of Channel Islands assets in Lombard up for sale.
One of Britain’s biggest asset finance providers, lending £6billion in 2015, Lombard set up its Jersey branch in 1972. From St Andrew’s Place, the provider helped businesses finance capital projects spanning machinery, vehicles and aircraft.
But its Channel Islands operations stopped taking on new business earlier this summer as a result of new ring-fencing rules.
The move resulted in seven job losses in Jersey, and others across the other three offshore jurisdictions – Guernsey, Gibraltar and the Isle of Man.
Now a “for sale” sign has been hoisted over what remains of the offshore business, which Reuters reports could be as much as £200m. RBS, which holds responsibility for Lombard, has reportedly asked KPMG to handle the auction of the business.
It’s one of the first cases of a major bank selling off large-scale business due to the new ring-fencing rules.
The rationale behind the rules is that taxpayers will be better protected in the event of another financial crash.
RBS, which was previously bailed out by the state, is more than 70% owned by British taxpayers. Selling off Lombard will represent a significant downsizing measure for the company.
RBS refused to comment on the matter.
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