Formerly | |
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Company type | Public limited company (subsidiary undertaking) |
Industry | Investment Banking |
Founded | 2016 (1992) |
Headquarters | London, England, UK |
Key people |
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Products |
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Parent | NatWest Group |
Website | ci |
NatWest Markets plc is the investment banking arm of NatWest Group based in the United Kingdom.
The company was created from the then RBS Group's corporate and institutional banking division in 2016, as part of a structural reform intended to comply with the requirements of the Financial Services (Banking Reform) Act 2013 and to give the NatWest brand greater prominence. The Act implements the Independent Commission on Banking recommendation that domestic retail banking should be "ring-fenced" from riskier trading activities by 2019. [2] The ring-fenced sub-group, NatWest Holdings, was created at the same time.
To give it legal form, The Royal Bank of Scotland was renamed NatWest Markets in 2018; at the same time Adam and Company (which held a separate PRA banking licence) was renamed The Royal Bank of Scotland, with Adam and Company continuing as an RBS private banking brand until 2022. [3]
The NatWest Markets name was previously used from 1992 to 1997, the remnants of which were absorbed into the Royal Bank of Scotland Group on the acquisition of National Westminster Bank in 2000. [4] RBS Group was renamed NatWest Group in 2020.
NatWest Markets' origins lie in County Bank, the merchant banking subsidiary of National Provincial Bank formed in 1965. [5] The original County Bank was established in Manchester in 1862 and, in 1935, merged into District Bank, which was acquired by National Provincial Bank in 1962. [6] The merchant bank acquired various stockbroking and jobbing firms, becoming County NatWest when the banking system was deregulated in 1987; it was later consolidated with corporate banking to form NatWest Markets. [7] NatWest Markets acquired US-based Greenwich Capital in 1996 and became Greenwich NatWest following disposal of large parts of the business. [8]
The bank's expansion strategy hit trouble with the stock market crash of 1987 and involvement in the financial scandal surrounding the collapse of Blue Arrow. The Department of Trade and Industry report on the affair was critical of the bank's management and resulted in the resignation of several members of the board, including then chairman Lord Boardman. [9]
In the early 1990s, County NatWest merged with NatWest's treasury and foreign exchange divisions to form NatWest Markets. In 1996, NatWest Markets acquired private equity firm Hambro Magan. [10]
In 1997, NatWest Markets revealed that a £50m loss had been discovered; this was revised to £90.5m after further investigations. Investor and shareholder confidence was so badly shaken that the Bank of England had to instruct the board of directors to resist calls for the resignation of its most senior executives in an effort to draw a line under the affair. [11]
The bank's internal controls and risk management were severely criticised in 2000 and its aggressive push into investment banking questioned, after a lengthy investigation by the Securities and Futures Authority. [12] The bank's move into complicated derivative products that it did not fully understand seemed to indicate poor management. By the end of the year parts of NatWest Markets had been sold, others becoming Greenwich NatWest in 1998. [13]
NatWest Markets provides global market access to corporate and institutional customers, offering trading, risk management and financing solutions through its trading and sales operations in London, Singapore and Stamford and sales offices in Dublin, Hong Kong, San Francisco and Tokyo. [14] Its activities are primarily related to the economic environment in the United Kingdom, Europe and the United States, deriving a substantial majority of its income from its operations in the UK.
Established in 1981, US broker-dealer, Greenwich Capital Markets was acquired by Long-Term Credit Bank of Japan in 1988 and divested to National Westminster Bank in 1996. [15] From 1998 until 2000, when NatWest was taken over by the RBS Group, it was part of Greenwich NatWest under the joint management of co-chief executives Gary Holloway and Konrad "Chip" Kruger. [16]
Greenwich Capital Markets became RBS Securities (trading as RBS) in 2009, prior to which it had used the marketing name RBS Greenwich Capital. [17] It is a direct subsidiary of RBS Holdings USA (until 2009, known as Greenwich Capital Holdings), whose direct parent is Delaware-registered NatWest Group Holdings Corporation, which was formed in 1996 to facilitate the purchase. Based in Stamford, Connecticut, it specialises in fixed income arbitrage and other fixed income strategies. Renamed NatWest Markets Securities Inc. in 2018, it is Financial Industry Regulatory Authority registered and a member of the Securities Investor Protection Corporation.
Registered in Hong Kong and regulated and authorised by the Japanese Financial Services Agency, NatWest Markets Securities Japan Limited operates through its Tokyo branch. Previously a direct subsidiary of RBS, it provides credit trading, bonds, swaps and related financial services. In conjunction with RBS Group's acquisition of parts of ABN AMRO Bank (later RBS N.V.), the two firms' Tokyo branches were consolidated in 2009.
The business was established as County Securities Japan in 1986; it became County NatWest Securities Japan in 1987, NatWest Securities Japan in 1995, Greenwich NatWest Securities Japan in 1998 and RBS Securities Japan in 2001, before adopting the present name in 2018.
NatWest Markets N.V. traded as The Royal Bank of Scotland N.V. from the 2007 acquisition of ABN AMRO Bank until 2018. The business has been repurposed to provide continuity of service to EU customers following the UK's withdrawal from the European Union, commonly known as Brexit.
NatWest Markets Asia Securities (Singapore) Pte. Ltd. was founded by ABN AMRO in 1987 and operated as The Royal Bank of Scotland Asia Securities (Singapore) from 2009 until 2018. NatWest Markets N.V. is registered in Amsterdam and regulated and authorised by De Nederlandsche Bank.
NatWest Markets Services India Pvt. Ltd. is registered as a service company with offices in Gurugram, Chennai, Delhi, Bengaluru and Mumbai.
In 2020, NatWest Group announced that NatWest Markets would be refocused to support a more integrated corporate and institutional customer offering. This would mean a period of significant transformation for the business, which would have a leaner operating model and would focus capital towards supporting the Group’s customers’ needs and increasing its focus on digital solutions. Alongside this, it was announced that it would be reducing its risk-weighted assets, managing down and optimising inefficient capital and activities. [18]
In 2022, NatWest Group announced the creation of Commercial and Institutional, which brought together the Commercial, NatWest Markets and RBS International customer businesses as a new operating segment. [19]
NatWest Group PLC is a British banking and insurance holding company, based in Edinburgh, Scotland.
ABN AMRO Bank N.V. is the third-largest Dutch bank, with headquarters in Amsterdam. It was initially formed in 1991 by merger of the two prior Dutch banks that form its name, Algemene Bank Nederland (ABN) and Amsterdamsche en Rotterdamsche Bank.
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Adam and Company Investment Management Limited is a wealth management company based in Edinburgh, Scotland offering discretionary investment management and wealth planning services to high-net-worth clients in the UK.
The Royal Bank of Scotland International, trading under the NatWest International (retail), RBS International (institutional), Coutts Crown Dependencies and Isle of Man Bank brands, is the offshore banking arm of NatWest Group. It provides a range of services to personal, business, commercial, corporate and financial intermediary customers from its base in St. Helier, Jersey.
The Royal Bank of Scotland plc is a major retail and commercial bank in Scotland. It is one of the retail banking subsidiaries of NatWest Group, together with NatWest and Ulster Bank. The Royal Bank of Scotland has around 700 branches, mainly in Scotland, though there are branches in many larger towns and cities throughout England and Wales. The bank is completely separate from the fellow Edinburgh-based bank, the Bank of Scotland, which pre-dates the Royal Bank by 32 years. The Royal Bank of Scotland was established to provide a bank with strong Hanoverian and Whig ties.
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National Westminster Bank Plc, trading as NatWest, is a major retail and commercial bank in the United Kingdom based in London, England. It was established in 1968 by the merger of National Provincial Bank and Westminster Bank. In 2000, it became part of The Royal Bank of Scotland Group, which was re-named NatWest Group in 2020. Following ringfencing of the group's core domestic business, the bank became a direct subsidiary of NatWest Holdings; NatWest Markets comprises the non-ringfenced investment banking arm. The British government currently owns 19.97% of NatWest Group after spending £45 billion bailing out the lender in 2008; the proportion at one point was 54.7%. NatWest International is a trading name of RBS International, which also sits outside the ringfence.
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