Northern Rock closes Guernsey branch as it returns to private sector
Northern Rock announced its plans to shut down its offshore arm once September arrives.
The move will give its 6,000 customers at Northern Rock Guernsey three months to move their savings to a different provider. The group gave the announcement along with a statement that the decision came during a strategic review of overall business plans. The nationalised bank has been working hard to return to the private sector, which will include suspending or stopping some of its operations.
The move will allow Northern Rock to focus more solidly on its core business throughout Ireland and the UK. Selling the offshore endeavor was also considered, but according to the group the present economic environment would not allow for an immediate sale.
The bank has been quick to reassure customers that closures will take place in an orderly manner, and customers will be given adequate time to remove their money from the bank. The group added that at present the business is still a safe, secure place for customers’ savings. In relation to longer-term items, such as fixed-rate bonds, the bank said it is considering compensation in the form of good will payments.
Chief executive of Northern Rock, Gary Hoffman said the closure of the Guernsey branch is considered a necessary step as the company moves again towards privatisation. The bank was nationalised as part of the government bail outs when the economy bottomed out.