Lloyds Banking Group is set to pull Bank of Scotland out of Ireland and cease all lending by the end of the year.
The Bank of Scotland Ireland’s lending facilities will now transfer to the Bank of Scotland.
It had been trading under the Halifax brand in Ireland but will stop by December 31 2010.
The decision, follows closing down of the broker and retail divisions of the bank earlier this year.
Last month the bank admitted that 90% of its Irish commercial property assets were toxic.
Lloyds says it will work to ensure a smooth transition and will be informing customers of any changes.
It adds: “Under this proposal it is envisaged that lending customers of the bank would see minimal change in how their existing accounts are managed. It is intended that customers’ loan facilities would transfer to Bank of Scotland plc where customers would continue to repay their loans until they reach maturity or when they are paid down in full.”
The group plans to employ an independent service company to oversee administration for the the bank’s business, subject to approval.
Over 800 employees were briefed by management this morning and the union Unite has also been involved in discussions with the bank.
The Group’s other business operations in Ireland and Northern Ireland – including its Halifax branch network and customers service centre in Northern Ireland and its insurance operation in Shannon – are unaffected by this announcement.