DBS Bridge Bank was set up to house the assets from Scottish lender Dunfermline Building Society, which collapsed in March, while a permanent arrangement was sought.

Nationwide, the country's biggest building society, took over Dunfermline's core assets in March in return for a 1.6 billion pound payment from the government.

The Bank said the selection followed a competitive auction process in accordance with the code of practice issued by the government under the Banking Act 2009.