The Financial Services Authority has authorised Northern Rock as a new savings and mortgage bank . The regulatory body will continue to monitor Northern Rock as both a deposit taker and mortgage lender . The Company, which is currently under Temporary Public Ownership, has an estimated £19 billion of retail savings balanced on its books as well as £10 billion of residential mortgages . All of these retail savings accounts have been transferred to the Company, as have a proportion of the mortgage accounts.
It is unclear as yet whether the switchover will have any impact on the interest rates offered by Northern Rock, but the changes have been made with consumers in mind and efforts have been made to ensure that customers are not affected in any way by the chance. Customers will receive letters informing them of the switch, but they will continue to hold the same account and can still contact the bank via the existing means.
The Government guarantee of the retail savings remains in place, though is under review by HM Treasury and the FSA given the new banks strong capital and liquidity position.
FSA Authorises Bank as Savings and Mortgage Provider
Financial Services > e-banking > Banking news
FSA Authorises Bank as Savings and Mortgage Provider
Wed, 06 Jan 2010
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