Stephen Donnelly (Wicklow, Independent)
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319. To ask the Minister for Finance in view of a published report by the Royal Bank of Scotland (details supplied) his views that RBS and its subsidiaries have acted appropriately in their treatment of loans and overdrafts provided to businesses here; his views regarding the operation of Ulster Bank and its West Register subsidiary in its management of loans and their taking control of shares and assets of borrowers; and if he will make a statement on the matter. [34663/14]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the report by Clifford Chance LLP, who was engaged by The Royal Bank of Scotland (RBS) to independently review the central allegation made by Dr Lawrence Tomlinson in a report entitled Banks' Lending Practices: Treatment of Businesses in distress (the Tomlinson Report). Clifford Chance was instructed to investigate the central allegation made in the Tomlinson Report that the bank, through its Global Restructuring Group (GRG), was guilty of "systematic and institutional" behaviour in artificially distressing otherwise viable businesses, putting its customers "on a journey towards administration, receivership and liquidation". The review focused on two groups within GRG: the group that deals with SMEs and the group that purchased properties (West Register). The Clifford Chance review covered RBS customers in Britain and Ulster Bank customers in Northern Ireland.  The review found no evidence to support the central allegations but noted that it found it difficult to understand how the bank calculated its fees and said greater transparency was needed.

Following the publication of the Tomlinson Report in November 2013, officials from the Department of Finance met with Ulster Bank officials. With regard to the allegations contained in the Tomlinson Report about West Register, my officials were assured that West Register was involved with a small number of Irish businesses. There is no reference to Ireland in the report. There were media reports in January 2014 which stated that Dr Tomlinson was meeting with business customers of Ulster Bank in Northern Ireland. Dr Tomlinson stated that some of the customers he met with were from the Republic of Ireland. The Financial Conduct Authority (FCA) in the UK is also conducting an independent review of the treatment of business customers by the RBS Group. RBS has stated that it will cooperate fully with the on-going FCA inquiry which is looking at all aspects of how the bank works with distressed businesses and will ensure that the Clifford Chance report is available to the FCA for their investigation. RBS has also commissioned a review for Ulster Bank customers in Ireland into this same allegation.

I would also refer the Deputy to the Central Bank's revised Code of Conduct for Business Lending to SMEs, which came into effect on 1 January 2012. A copy of the Code is available on the Central Bank's website.  I am informed by the Central Bank that if a customer believes that the Code of Conduct has not been applied to his or her case by a regulated entity, a complaint should be made to the Central Bank at .