Discussion of banking disintegration, focussing on the various complexities arising from the partial divestment of RBS branches to the Santander Group. The specific problems of divestment might spawn a new IT service industry.
UK Banks are under increasing pressure from a range of external stakeholders to clarify the real value and nature of their assets. There are many aspects of banking and its operations that complicate a Bank’s reaction to this pressure.
This Appendix highlights why Banks lend to each other and the three means that are used: (1) Money Market Loan and Deposits; (2) Syndicated Loans and Loan Markets; (3) Securitisation and CDOs.
What has happened to Interbank markets over the last 6 months, why has this happened and what is the expected impact on IT and Operations. There are two main areas of change as a result of the credit crunch for IT and Operations; (1) Stop / Run down programmes, and (2) New MI based on Capital. These are discussed further in the article.
An Investment bank works from a systems and operations point of view. It is by necessity a simplification of reality but conveys the essence of the game. There are two parts to this; The Core Trading Business Model & The Investment Bank Structural Overlay.
The RBS challenge in integrating ABN Amro, describing the necessary stages of the ABN separation project and the RBS integration project.