PART-NATIONALISED Bradford & Bingley is to divide its £50 billion balance sheet into good and bad assets in an effort to speed up the repayment of a £18.4 billion loan, it was reported today.
Echoing steps currently being taken by Northern Rock, B&B is looking to identify the attractive assets that it can sell to private buyers.
The bank was closed to new business last September and its mortgage book nationalised with an £18.4 billion loan from the Financial Services Compensation Scheme (FSCS).
The Government paid the FSCS fee but the financial services industry must cover the sum over time.
In an attempt to speed up repayment, the Times newspaper said B&B was looking to split off mortgages that are performing well or are low risk because they have a low loan-to-value ratio, which would be attractive to a buyer.
B&B recently announced its intention to turn itself into a mortgage services firm, in which it would manage mortgages for other banks. There are no plans for it to start lending again.
The group’s savings business was sold to Abbey and Alliance & Leicester owner Santander a year ago.