The United Kingdom will create three new chains of banks from the sale of three institutions saved from financial crisis. The three institutions are the Royal Bank of Scotland (RBS), Lloyds Group Banking Group and Northern Rock. The British government owns 43% of Lloyds, 70% of RBS, while Northern Rock is completely nationalized. These banks received a lot of financial help from the government about a year ago due to the financial crisis.The British government confirm this Tuesday the creation of the new institutions. The creation of the new banks will be done by 2015.The new banks will focus on retail operations, especially in deposits and mortgages.
They will be sold to new groups that enter the bank market. The government confirms that an owner of a bank in United Kingdom can’t participate in the new institutions. Because of this, the institutions may be owned by groups from the United States, Australia and Middle East. Regulators are worried that institutions help by the government have an advantage over other banks that did not receive it. What functionaries want is something better for the consumer by recovering the cash from taxpayers. Also they want to create a stronger mortgage market and more competition. If there is an advantage, competition will not exist.
