Competitive Measures

Overview

Northern Rock plc is determined to return to private ownership as rapidly as possible, as a viable, competitive bank, requiring no support from Government.

We are aware that during the period of temporary public ownership, Government support could enable us to compete, or be seen to compete, on an unfair basis.

We are determined to ensure that we will not take unfair advantage of Government support during this interim period as it is not in our long term interests to do so.

Before the legal and capital restructure of the former Northern Rock on 1 January 2010 it had been operating under a self-imposed Competitive Framework for almost two years.

As agreed with the EC as part of our State Aid package, we are now operating under a revised set of Competitive Measures. These will be kept under review and remain subject to the requirements of the European Commission.

Our commitments include

We will not explicitly refer to Government ownership in marketing literature.
Northern Rock plc will limit new lending volumes to £9 billion in 2010 and £8 billion in 2011.
Northern Rock plc will maintain retail deposit balances across the UK, Ireland and Guernsey at or below £20 billion until the end of 2011.
Northern Rock plc will not rank in the top three of Moneyfacts mortgage categories for 2, 3 or 5 year fixed or variable mortgages before the end of 2011 (excluding mortgages with an LTV ratio of greater than 80% and products for first time buyers).