planned Chinese private banking joint venture with Bank of China
(BOC), one of the most ambitious projects yet to grab high net
worth clients in the Asian country, seems to be running into
obstacles.
Disagreement has emerged between the two banks over how big a stake
each side will have in the proposed venture, according to Beijing
bankers. RBS wants at least a 25 percent stake, which the Bank of
China is reluctant to concede.
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Under an agreement the banks made in 2006, the venture was to have
been controlled by Bank of China. Coutts, the private banking arm
of RBS, was to be responsible for the venture’s private banker
training, product research and development, and staff
recruitment.
Since then, however, both banks have evolved their international
private banking strategies. After the RBS-led consortium
acquisition of ABN AMRO, the UK bank took over much of the Dutch
bank’s business in Asia. This included ABN’s Van Gogh preferred
banking service centres in China, aimed at mass affluent
clients.
In turn, Bank of China is developing its own private banking
strategy. Two pilot private banking outlets shared between RBS and
BOC made their debuts in Beijing and Shanghai in March last year.
Both outlets carried the logos of RBS and BOC, but another branch
subsequently opened at year-end in the city of Dalian had only the
BOC logo. This is seen as signalling that BOC has started its own
private banking initiative, separate from RBS.
A spokeswoman from RBS declined to comment.
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By GlobalDataRBS takes Indian operations
In another move in Asia, RBS is acquiring the Indian private
banking operations of ABN AMRO.
A special deal has been clinched with Fortis, which is acquiring
most of the Dutch bank’s asset management and private banking
operations under the ABN breakup by the consortium. The Indian
operations will be rebranded as RBS Coutts.
