FEARS are mounting that Lloyds Banking Group may pull the plug on its Bank of Scotland Ireland (BoSI) operation after it racked up billions of euro in loan losses.
Two market sources said a decision was taken last week to wind down the bank's remaining businesses here
Bank of Scotland Ireland is set to wind down its remaining operations saying there was little opportunity for scalable growth in the future.
Its plans to transfer its business currently carried on by BoSI to Bank of Scotland plc.
Concerns over the bank's plans were raised after a staff meeting was called at its Dublin headquarters this morning.
Today the bank announced that Bank of Scotland plc would enter into an agreement with an independent service company that would perform various administrative functions relating to the BoSI banking business.
Under this proposal, the 'majority' of BoSI employees, which numbers over 800, would transfer via Transfer of Undertakings (Protection of Employment) Regulations to the service company.
Does anyone know what happens to BoSI customers that have depsoits, such as term deposits with them? The BoSI websites does not yet state that they have stopped taking deposits.
The decision came after the 41%-U.K. government owned bank "concluded there was little opportunity for scalable growth in the future."
Lloyds said Bank of Scotland will then enter into an agreement with an independent service company to perform administrative functions related to the Irish business.
Current Bank of Scotland (Ireland) employees would be transferred to that company, avoiding significant job losses, the bank added.
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