 English banks have to buy their notes at face value |
There is to be a shake-up of the rules governing the printing of Northern Ireland banknotes, which could cost the four local banks about �25m a year. English banks buy their notes from the Bank of England, by keeping an equivalent amount of cash on deposit.
The local banks, however, avoid making these cash deposits several days a week, saving them �25m a year.
The Treasury is consulting on proposed changes and said it wants all the banks on the same footing competitively.
It also said it wants to be sure that should one of the local banks go out of business, that the public can get their notes redeemed.
The Treasury said it does not want to see customers paying for the loss of profits.
Depending on the changes that are finally agreed, the move might prompt some of the local banks to think again about whether it is worth continuing with their own notes.
The right enjoyed by the local banks to print their own notes - along with banks in Scotland - dates back to the 1840s.
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