Policy paper

RBS and the case for a bad bank: the government바카라 사이트檚 review

The government review into the case for an RBS bad bank.

• From: HM Treasury and The Rt Hon George Osborne
• Published: 1 November 2013

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Documents

Ref: ISBN 978-1-909790-43-8, PU1581

PDF, 1.34 MB, 153 pages

Details

RBS has announced a new direction today (Friday 1 November) that will enable the bank to focus on its core job of supporting the British economy and lending to British businesses. The new direction is supported wholeheartedly by the management and Board of RBS, the Bank of England, UK Financial Investments and the government.

RBS바카라 사이트檚 new direction will deliver a bank that is a boost to the British economy, with an ambitious goal to become the best bank in Britain for business customers, and from which 바카라 사이트� in time 바카라 사이트� the British taxpayer can start getting its money back.

Alongside RBS바카라 사이트檚 announcement on its new direction, the government is publishing its review into the case for an RBS bad bank, announced by the Chancellor at Mansion House in June 2013, which has assessed the case for creating a taxpayer-funded external bad bank against the government바카라 사이트檚 three objectives for its shareholding in RBS:

1. accelerating its return to the private sector

2. supporting the British economy

3. getting best value for the taxpayer

The Review was conducted by the Treasury 바카라 사이트� using external expert advisers 바카라 사이트� and sets out the challenges facing RBS today, and how RBS바카라 사이트檚 new direction tackles each of these challenges, including tackling the legacy of its 바카라 사이트榟igh-risk바카라 사이트� and poorly-performing assets.

Through RBS바카라 사이트檚 new direction, a bad bank will be created 바카라 사이트� but instead of an 바카라 사이트榚xternal바카라 사이트� bad bank that would require taxpayers바카라 사이트� money, an 바카라 사이트榠nternal바카라 사이트� bad bank funded by RBS will enable management to focus on new lending.

In order to become a bank that is a boost to the British economy, rather than a burden, RBS has announced comprehensive measures including:

• accelerating exit from Citizens in the US, as part of a plan to raise capital equivalent to adding two percentage points to its capital ratio by 2015, in order to strengthen its balance sheet and focus on lending in the UK

• embracing a new commitment to being the number one small business bank as judged by customers, and measured by a newly-created survey to be run by the Federation of Small Businesses (FSB) and British Chambers of Commerce (BCC)

• continuing to shrink its investment banking arm with the results of a review of the Markets division to be published in February 2014

• aggressively tackling its cost base to improve the performance of its 바카라 사이트渃ore바카라 사이트� businesses

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Published 1 November 2013