RBS 2015 Annual Report Download - page 54

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Ring-fencing – update
RBS Group plc
(Holding Company)
RBS International CIB NRFB
(current RBS plc)
Ring-Fenced
Holding Company
(PBB & CPB)
~80% of RWAs expected to be committed to Ring-
Fenced Bank (4)
~15% RWAs in CIB NRFB. Target well capitalised entity
with an investment grade credit rating (4)
Overall group supported by Bank-wide service platform
and functions
Future LAC downstreaming not planned to commence
prior to completion of legal entity realignment for Ring-
Fencing
Target organisational structure
Submitted updated ring-fencing plans to regulator Jan 2016
Final ring-fencing rules anticipated summer 2016
Legal entity restructuring, including establishment of Ring-Fenced Bank holding company, to begin H2 2016
Regular Rating Agency engagement anticipated throughout process
Indicative financials for new legal entities anticipated prior to full implementation
Target operational compliance ahead of 1 Jan 2019 implementation
Implementation timeline
(1) The proposed future ICB structure comprises part of the preliminary plan submitted to the PRA in January 2016 and is subject, amongst other matters, to (i) further analysis and possible amendment following
discussions with the PRA and finalisation of the ring-fencing legislation and the PRA ring-fencing rules, (ii) all applicable regulatory and other approvals and (iii) employee consultation procedures.
(2) Non-Ring Fenced Bank. (3) RBS plc will own most of our activities outside the ring-fence - primarily our Markets business (Rates, Currencies, DCM) and some corporate activity, as well as our US broker-dealer, RBSSI.
(4) Based on RBS future business profile business and excludes RBS Capital Resolution.
(1)
(2)
(3)
45