Plan 'does not go far enough'
Challenger banks object to RBS’s ‘Plan B’
The bank has proposed a £750 million fund to help smaller banks as an alternative to an EU-imposed ruling that it sells a parcel of branches.
It has failed to find a buyer for the 300 branches which it has been required to offload or float under the revived Williams & Glyn brand. The bank was forced to dispose of assets as a condition for receiving state aid in 2008.
Issues over IT systems have been blamed for the collapse of sale talks and the bank has struggled to meet EU deadlines.
Earlier this year it proposed the alternative plan with support from the Treasury and this is now being tested by European regulators.
However, Paul Lynam, chief executive of Secure Trust and head of the group of banks lobbying RBS, said:”The alternative proposals should allow a much broader range of banks to participate.”
Challenger banks want measures to be imposed that will force RBS to continue providing services to smaller companies.
The challenger banks plan to urge European regulators to take another look at RBS’s proposals.