Bank considers establishing separate operation in Britain

BANK of Ireland has plans to established a separate banking operation in Britain that would be regulated by the British Financial Services Authority and have its own independent board.

Bank of Ireland, the seventh largest bank in Britain, is understood to be in talks with the British Financial Services Authority about the business which could be operational by the middle of the year.

It already holds a joint venture with the British Post Office and last month the Government outlined details of plans to create a Post Office Bank offering financial services locally.

The “People’s Bank” is intended to encourage saving and provide credit for those on low incomes. Bank of Ireland will back the mortgage product.

Bank of Ireland has been operating in Britain for more than 30 years and with the Post Office for six years.

A spokesman for the bank could not comment.

At the moment its British operations are overseen by the Irish Financial Regulator and customers are protected through Ireland’s deposit guarantee scheme.

Bank of Ireland executives are keen to achieve a more formal separation of the business. There are moves to encourage a bank with operations the size of Bank of Ireland’s in Britain to be regulated by the market in which they operate.