Clydesdale explains UK provisions
The review by Clydesdale Bank of interest rate hedging products is "significantly further advanced" than its review of tailored business loans, NAB's UK subsidiary disclosed in its half-year financial statements.The bank has a long running "review and redress exercise on sales of certain interest rate hedging products to small and medium businesses," sometimes on loans dating back to the mid 2000s.Clydesdale said it "embarked on a formal program to identify small and medium sized customers that may have been affected, and where due, pay financial redress."The bank is "also dealing with a number of claims by customers in relation to tailored business loans not currently in scope of the review," it said. Clydesdale said it "reassessed the level of provision considered necessary", lifting provisions by £114 million, taking the total provisions raised in respect of interest rate hedging products to £181 million.