Royal Bank of Scotland invests GBP 2 bln Brexit funding for SMEs

Wednesday 24 October 2018 13:11 CET | News

Royal Bank of Scotland has set aside GBP 2 billion in funding for services that will help SMEs deal with Brexit.

The cash would be used to provide services, such as trade finance, term finance, and increased liquidity for small businesses, which rely on EU labour markets or exposure to foreign exchange movements. The bank said it would contact about 2,000 existing RBS and NatWest customers that would benefit from the services.

Also, UK banks have been making practical preparations as concerns grow about Brexits effect on supply chains, and financial risks for businesses. These plans include the setting up of new continental European subsidiaries or transferring operations, also focusing on the domestic impact Brexit could have on the customers.

The GBP 2 billion fund will be added to an existing GBP 1 billion growth fund programme announced earlier in 2018. The bank said it had so far lent about GBP 900 million of the initial GBP 1 billion earmarked for investments in manufacturing and technology. It is also paying for a GBP 775 million scheme to boost competition, including GBP 350 million to encourage customers directly to switch provider.

The scheme is due to launch in February 2019.

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Keywords: Royal Bank of Scotland, Brexit, SMEs, trade finance, e-invoicing, supply chain, financial risks, UK
Countries: World