Yorkshire Building Society announced it will wind down the business of its offshore subsidiary, Yorkshire Guernsey Limited. The decision was made following a strategic review, which determined regulatory changes in the UK were negatively impacting Yorkshire Guernesy’s business.
Iain Cornish, Yorkshire’s Chief Executive, said:
Whilst our offshore operation has been very successful and a valuable asset to the Society since its launch in 1990, recent changes to the treatment of offshore deposit-taking subsidiaries now means that it can no longer serve its original role within the Yorkshire Group.
As for depositors, Cornish explained:
As we work through the final stages of this review we will communicate fully with all Yorkshire Guernsey customers to advise them of this decision and how it will be managed.
We are very conscious of the impact of this decision on our staff at Yorkshire Guernsey, who have supported the business with complete professionalism throughout the review process. We will work closely to support all affected staff members as the business is wound down.
Yorkshire had considered other options alongside shuttering the business, including a possible change in legal status or sale to a third party. A company release reaffirmed the financial health of Yorkshire as a whole, emphasizing a recent Moody’s upgrade of its Financial Strength Rating. It glossed over the fact that the August 3rd upgrade was from D+ to C-.