U.K. banks are offloading assets by moving them into staff pension funds, Financial Times reports. The move is aimed at clearing unwanted assets from the banks’ balance sheets, as well as closing pension fund deficits. Last December, HSBC made a £1.76 billion payment into its pension scheme.
Lloyds Banking Group also made a £1 billion commitment to its pension fund as part of a £5 billion transfer of assets into an intermediary funding vehicle. Royal Bank of Scotland is also seeking to use only cash to address its pension fund deficit.
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