The parent company of Bank of Scotland (Ireland) has reached agreement on the establishment of a new company to handle the wind down of the bank’s operations in the State.
Lloyds said it had signed the heads of terms of a commercial agreement with BoSI management to provide the independent service company that will be responsible for supporting and administering the €32 billion BoSI loan book into the future.
About a third of the loan book relates to business loans, a third to property development and investment loans and a third in mortgages.
On August 20th, Lloyds Banking Group announced plans to close BoSI. This will involve closing the business to deposits, current accounts and new lending.
The management team who will form the independent service company are BoSI chief executive Joe Higgins; head of risk Martin Akers; Tom FitzGerald, the bank's chief financial officer; human resources chief Gavin Lyng; Siona Meghen, who is in charge of strategy; and head of business supports Mark Mohan
Lloyds previously said the wind down would lead to 36 redundancies, with most of its 800 staff transferring to the new company.
Some 600 BoSI staff, members of the Unite trade union, yesterday voted overwhelmingly in favour of industrial action over the failure of BoSI management to provide clarity on the establishment of the new company.