Ethical bank Triodos prepares for Brexit
Dutch ethical bank, Triodos, has turned its UK operation into a wholly-owned subsidiary company, with its own UK banking licence, in readiness for the UK’s potential departure from the EU, reports Martin Whybrow.
Personal customers and eligible organisations were previously protected by the Dutch Deposit Guarantee Scheme (DGS) but will now be covered by the UK’s Financial Services Compensation Scheme (FSCS).
Triodos Bank also has banking activities in Germany, Spain, Belgium and France. Since 1995, Triodos Bank has operated in the UK under the “passporting” regime made possible by EU agreements.
Under this arrangement, a banking licence could be issued and supervised by the Dutch Central Bank (De Nederlandsche Bank) and was subject to limited regulation by the UK Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
In part as a result of launching a current account, as well as due to increasing awareness of climate change, Triodos Bank has seen a 26% increase in its UK customer base in the last three years.
Triodos Bank in the Netherlands uses a methodology, Platform for Carbon Accounting Financials (PCAF), from a group of Dutch financial institutions to calculate the greenhouse gas emissions of loans and investment portfolios. PCAF covers a number of relevant asset classes, including listed equity, project finance, mortgages, commercial real estate, project finance and corporate debt.
