NATWEST is pulling out all the stops in its attempt to ward off the attentions of Bank of Scotland. Having failed to find a white knight so far, it has issued a defence document which, in essence, mimics Bank of Scotland's plans for the operation. It is selling off or floating non-core operations - including the profitable Ulster Bank operation in the Republic - and reducing staff.

While the moves indicate it has no intention of succumbing to the Bank of Scotland offensive, it is still far short of guaranteeing its continued independence. Closer to home, the news that Ulster Bank will be floated or sold off is a further jolt to the ban king system, already digesting the sale of ICC Bank and the merger of ACC and TSB.

If sold, it will provide a perfect opportunity for either National Irish Bank or Irish Life & Permanent to achieve that much sought-after third force slot in Irish retail banking. Then again, it could well allow foreign competitors a foothold in the highly profitable Irish banking market. As if they haven't had enough headaches with Bank of Scotland's entry.