Virgin Money buy signals its retail banking ambitions
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Virgin Money has entered the UK banking market by acquiring small retail bank Church House Trust.
The move has already been approved by the Financial Services Authority and the acquisition will provide the platform from which Virgin Money can develop a retail banking business in the UK.
A range of products will be offered to consumers under the Virgin Money brand.
Church House Trust is a regional bank offering deposits and mort-gages. It does not rely on wholesale markets for funding
Last week Virgin Money played down its rumoured interest in Northern Rock as National Australia Bank emerged as a contender for the nationalised lender.
A spokesman for Virgin Money says the company is currently focussing on securing its banking licence from the FSA. Virgin Money applied for its licence in October and says it expects to hear about the progress of this soon.
The spokesman says: “The name Virgin Money is always mentioned whenever the subject of Northern Rock comes up because we came forward with plans to recapitalise the lender before it was nationalised in 2008.”
It emerged last week that National Australia Bank, parent of Clydesdale Bank and Yorkshire Bank, has been involved in meetings concerning a takeover deal for Northern Rock. The company declined to comment.
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