UK Government

HM Treasury: Government welcomes approval of RBS restructuring

News   •   Dec 15, 2009 11:11 GMT

The Government has today welcomed the European Commission's approval of the restructuring of the Royal Bank of Scotland (RBS) and State Aid approval for the Asset Protection Scheme (APS).

Plans for the restructuring of RBS were announced on 3 November, following an agreement with the Treasury on the bank's participation in the APS.

Financial Services Secretary to the Treasury Paul Myners said:

"Today is an important day for RBS. It has been more than a year since the Government first intervened to protect depositors in the bank.  Since that time, a great deal of work has gone into understanding the full scale of the challenges facing RBS and the steps needed to address them.

"After requiring significant taxpayer support, RBS can now get on with the task of planning for its future and working to give the public a good return on its investment in the bank.

"Importantly, the divestments that RBS will make in the years ahead will be part of the biggest shake-up in High Street banking this country has seen in decades.  Together with the eventual sale of Northern Rock and divestments from Lloyds, we could have three new banks operating on the High Street within four years.

"We thank the European Commission for their support and hard work in getting us to this point."

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PN 120/09

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