Updated 10.00
Ulster Bank will face a full review of its operations by its parent company the Royal Bank of Scotland
RBS said today that the review will be concluded by the end of next February.
In a statement issued today €10.5 billion of Ulster's loans will be put into an internal bad bank and wound down over time.
Ulster Bank has welcomed the development.
Our Business Editor Ian Guider explained the move on Newstalk's Breakfast:
The bank said it needed to ensure that Ulster had a viable future and a sustainable business model.
An Ulster Bank spokesperson said "We welcome today's announcement regarding the outcome of the UK Government's Good Bank Bad Bank Review which confirms Ulster Bank as a core business for RBS and acknowledges the importance of Ulster Bank to the whole island of Ireland.
"We will now work through the detail of how we will operate the 'bad bank' and the structure required to support this. In the meantime, it is business as usual for our customers and we will communicate directly to any impacted customers.
"Ulster Bank will also be participating in a group-wide review of the business to be complete in February 2014, with a view to building a really good bank for our customers."
