State Bank of India (SBI) has said that it will carry on retail banking operations in the UK even though Bank of England has imposed a crackdown on foreign-owned banks’ operations in the country.
The ultimatum recently issued by the Prudential Regulation Authority of the Bank of England to the British operations of foreign-owned banks taking deposits of over £100m stressed on foreign banks’ need to restructure with their own ring-fenced capital or else exit retail operations.
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SBI, which has been operating in the UK for 95 years holding over £900m of deposits in Britain, is likely to be affected by the move.
In this landscape, foreign banks operating in the UK would have to close their retail banking operations in Britain or convert from branch status to full UK subsidiary.
At the same time, these rules will make it easier for wholesale foreign banks serving other financial institutions and large corporations instead of retail customers, to open non-deposit taking branches without any limits on size.
SBI said it is prepared to set aside £100m in ring-fenced capital and reshape its operations if required to retain operations on the high streets.
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By GlobalDataThe bank also looks to continue serving retail customers in Britain and open new branches.
