Romanov bank plan revealed

Published on Thursday 7 December 2006 12:12

HEARTS owner Vladimir Romanov has confirmed plans to open a branch of his Lithuanian bank in Edinburgh city centre.

The controversial tycoon has secured a site in Castle Street for a Ukio Bankas outlet which he plans to open by the end of March.

The bank will start off by offering personal banking services such as loans, current accounts, foreign exchange and mortgages, and in the longer term will try to break into Edinburgh's lucrative business banking market.

Mr Romanov has said it was his "dream" to see Hearts fans as Ukio Bankas customers, but will also be hoping to attract business from Eastern European immigrants living in Edinburgh.

His Edinburgh spokesman, Charlie Mann, would not reveal where in Castle Street the branch would be, but did admit: "The deal is signed, sealed and delivered in terms of a premises in Edinburgh.

"They've not put a date on moving in, but it will be the first quarter of 2007.

"The current tenants must move out first, then it will be refurbished, and then they will have to get staff. Then there will be the official launch."

He hinted that the move could be the start of a Romanov banking empire in the Capital.

"It's a step by step process - get in, get established, get the staffing levels, up and then open as a retail bank," Mr Mann said.

"They will aim to get that successful and then build from there."

Council leader Ewan Aitken said today that, although he did not know the exact location of the proposed bank, he felt it would be a "good addition" to the city's financial industry.

He said: "Any investment in Edinburgh is to be welcomed. We already have a strong financial services sector, so any addition to that will only help to strengthen the city further."

Mr Romanov announced his plans to the Vilnius Stock Exchange in Lithuania yesterday. Under Lithuanian banking rules he had to secure a premises before being granted a licence to operate overseas.

Ukio Bankas, which appears on Hearts shirts, is the financial arm of Mr Romanov's parent company, Ukio Bankas Investment Group, which helped make his fortune.

Edita Karpaviciene, the chairwoman of the Ukio Bankas board, was reported as saying that no Eastern European bank had set up in Scotland despite the high number of immigrants, and that "Ukio Bankas hopes to find its niche in this market".

She said: "The bank's experience in both western and eastern markets will give us a competitive advantage and the opportunity to become a financial mediator between the UK and eastern markets."

Earlier this year Mr Romanov revealed plans to open an office of Ukio Bankas in Edinburgh.

Sources revealed he had entered negotiations with Edinburgh property companies in an effort to establish his first foothold in the financial markets of western Europe.

The move to bring Ukio to Edinburgh will reinforce the roots Romanov has already put down in Edinburgh through his investment in Hearts.