Clydesdale faces swap review

Clydesdale Bank has confirmed that the City watchdog is to review its sales of interest rate-hedging products to small businesses.

The bank said it was too early to determine the financial impact of the review, which will also cover sister brand Yorkshire Bank.

Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland have already agreed to redress customers who were mis-sold the complex products, which were aimed at protecting firms from rising interest rates.

Clydesdale said: “The conduct of the review does not mean that there has been any finding of mis-selling. While Clydesdale Bank is still reviewing the specific detail, it will apply the recommendations to any cases where it is appropriate to do so.”