VLADIMIR ROMANOV'S bid to open an Edinburgh branch of his bank has been stalled by the credit crunch, despite him already recruiting a team of staff.
Four key personnel have been taken on by Ukio Bankas to work at its proposed branch at 10 Castle Street, and the firm has launched a second recruitment drive to fill a further three posts in the city.
However, it is understood Ukio Bankas has so f
ar been unable to agree with a UK bank to back its move into the country – meaning it remains unknown how long it will take before it is able to open.
Banking industry sources have said that, in the current economic climate, it is unlikely that any UK bank would be willing to act as a clearing bank for such a venture.
One source told the Evening News: "Before you offer a credit card facility you need to operate with a bank that will underwrite that.
"It's a slow process and it's slower now. Banks worldwide are not taking much in the way of chances.
"The process of getting insured takes longer. It doesn't mean that it is not going to happen, but it will take a lot longer."
Banks have tightened up all of their functions in the wake of the credit crunch.
Despite the slowdown, Ukio Bankas has pushed ahead with its recruitment plans for its first British branch, which had been due to open by the end of March 2007.
The bank was to begin by offering personal banking services such as loans, current accounts, foreign exchange and mortgages, and in the longer term was to try to break into Edinburgh's business banking market.
It is thought the bank's main purpose was to tap into the city's eastern European market by offering specialised services to them.
The four staff already recruited by Ukio Bankas, which sponsors Hearts, include a branch director, operations director, customer service manager and customer service adviser.
Advertisements for a further three positions are also currently on a recruitment website.
Two finance managers, with salaries of between £25,000 and £30,000 including benefits, are to be recruited, as well as a compliance assistant/manager, to be paid £27,000-£33,000, including benefits.
A spokeswoman for Ukio Bankas declined to comment on how long it would be before the branch was open.
She said: "Ukio Bankas is continuing with plans to open its first UK branch in Edinburgh. We are currently working through the administrative formalities by adapting our products, services and systems to the UK.
"We are focusing on being able to deliver our services to the highest standard when we do open, and look forward to being able to announce more news in future."
The full article contains 463 words and appears in Edinburgh Evening News newspaper.
