RBS drops out of regulator’s list of important global banks
Royal Bank of Scotland has been dropped from a list of the world’s most important banks, signifying the lender will no longer be required to hold extra capital in case it fails.
The Financial Stability Board (FSB) removed the British state-owned bank from its list of global systemically important banks that it started publishing following the 2008 financial crisis.
The banks included on the list have to ensure they hold enough capital to cover possible losses in order to avoid being saved by the State.
A decade ago, RBS was rescued from collapse by the British government with a £45.5 billion bailout. The state currently owns 62% of the bank, having recently reduced its stake from 70%.
RBS said: “We note this decision by the FSB which reflects our progress in building a much simpler, safer UK-focused bank.”
The FSB also removed Danish bank Nordea from its ranking, while France’s Groupe BPCE was added.
US-based investment bank JP Morgan Chase topped the list and remained the world’s most important bank.
RBS last month paid out its first dividend in 10 years after reaching a long-awaited 4.9 billion US dollar (£3.7 billion) settlement with US regulators over claims that it mis-sold mortgages in the run-up to the financial crisis.
It was considered the largest of a string of legacy issues that the bank is starting to put to rest since its bailout.