RBS might abandon the sale of its Williams & Glyn unit after a seven-year wrestle to promote the small enterprise lender, beneath authorities plans.
As a substitute, the Treasury mentioned RBS would offer £750m of initiatives to spice up competitors in UK enterprise banking.
RBS had been ordered by the European Union to promote the unit by the top of 2017 to handle competitors issues.
The financial institution didn’t promote the enterprise to Santander final yr, and talks with Clydesdale Financial institution additionally stalled.
The Treasury and RBS mentioned the choice plan can be sooner and higher at offering extra alternative of banking providers for small companies.
The European Fee nonetheless must approve the plan, submitted by the UK authorities.
The EU order to get rid of Williams & Glynn pertains to RBS’s £45bn authorities bailout on the peak of the monetary disaster in 2008.
European regulators had initially demanded that the sale of the unit needs to be accomplished by 2013 to stop RBS, the UK’s largest lender to small companies, from having too dominant a place.
The Williams & Glyn model disappeared in 1985 after being changed by the RBS model. The resurrected Williams & Glyn enterprise would have had 300 branches and about 1.eight million prospects.