UK-listed lender Northern Rock has confirmed that it is "engaging with third parties" over the sale of its £1.56bn commercial secured loan book. It was said in a trading statement released by the bank that it was looking to sell the portfolio to take advantage of soon-to-be-implemented Basel II regulations. A spokesperson said surplus capital from the sale would be used for share buybacks. He said one option would be for the bank to continue sourcing new commercial loans business, which would then be passed onto the buyers of the back book. Merril Lynch is advising on the sale.