Belfast Telegraph

RBS warns over Brexit danger for Ulster Bank

By Staff Reporter

The chairman of Ulster Bank parent Royal Bank of Scotland (RBS) has said a Brexit could lead to the UK lender cutting off its division in the Republic.

Howard Davies told Bloomberg that the bank would be "very concerned if we were detached" from Ulster Bank.

And he said RBS was thinking about what the implications would be of a UK-based institution owning a bank within the eurozone in the event of a Brexit.

Ulster Bank operates on both sides of the border, but its results for Northern Ireland are now reported in the wider UK organisation.

It is Northern Ireland's biggest lender but is only the third biggest in the Republic.

Some banks have indicated they may move staff if Britain votes to leave the EU in the event of a Brexit.

In his interview with Francine Lacqua and Tom Keene on Bloomberg Television on Wednesday, Mr Davies said: "There is an issue with our Irish bank we have to be careful about.

"There would be an issue with corporate lending into Europe. "Could we do that out of a non-EU entity or would we have to have an entity?

"It's practical issues like that which would affect us."

Belfast Telegraph