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Clydesdale & Yorkshire Bank receive approval to join Credit Guarantee Scheme

24th November 2008

Clydesdale Bank announces today (24 November) that further to the announcement made by the Chancellor on 8th October about the Government's recapitalisation scheme, the Financial Services Authority (FSA) has reviewed our capital position and is satisfied that we have the capital and strategic plan in place which would be necessary, if we were to apply for access to the Government's Credit Guarantee Scheme.

In satisfying the FSA’s requirements, Clydesdale Bank has not utilised the Government’s recapitalisation scheme and our future capital plans assume no use of this scheme going forward.

Commenting following the approval from the FSA, Clydesdale and Yorkshire Bank Chief Executive Officer Lynne Peacock said;

“Our Full Year results demonstrated that our business is performing well in difficult market conditions.”

“Standard and Poors (S&P) recently reaffirmed Clydesdale Bank’s credit rating as AA-, and this recognition by the FSA provides further evidence of our strong capital position and overall resilience.”

“Our parent group, NAB, is also one of the most strongly capitalised banks in the world - one of just over a dozen banks globally to hold an S&P AA credit rating.”


Notes to Editors

Credit Guarantee Scheme

In October HM Treasury announced that to ensure that the banking system has the funds necessary to maintain lending in the medium term through the credit guarantee scheme available to eligible institutions in relation to new short and medium term debt issuance.

To qualify for Credit Guarantee Scheme, the relevant institution must be an eligible institution and either already have, or have a plan for raising, Tier 1 capital by the amount and in the form the Government considers appropriate, whether by Government subscription or from other sources.

More information on the Credit Guarantee Scheme is available at:

HM Treasury website - (opens in a new window)

Financial Services Authority website - (opens in a new window)

Clydesdale & Yorkshire Bank

With a single banking licence in the UK, Clydesdale Bank PLC incorporates all profits generated under the Clydesdale and Yorkshire Bank brands. On 10 November 2008 the long term credit ratings of Clydesdale Bank PLC was reaffirmed as AA- by Standard & Poors.

National Australia Group Capital Position (opens in a new window)

On 10 November National Australia Bank Limited (NAB) successfully completed an institutional placement. The initial placement size of A$2 billion was significantly oversubscribed from a range of high quality institutional investors. As a result, the size of the offer was increased and A$3 billion of new equity capital was raised. This capital raising will move NAB to a Tier 1 ratio of in excess of 10% under FSA guidelines (8.2% under APRA).