RBS leaves state insurance scheme
Royal Bank of Scotland has taken a "significant step" towards privatisation after it announced it will withdraw from the £282bn state-backed insurance scheme.
The bank said the Treasury had given it permission to pull out of the Asset Protection Scheme, which was set up during the banking crisis to cover its riskiest loans, because its final £1.4m payment this week will see it reach the £2.5bn minimum threshhold.
The APS was set up in January 2009 to provide insurance cover for RBS and Lloyds Banking Group after their taxpayer-funded bailouts.
Treasury minister Sajid Javid welcomed the decision, telling BBC News:
“Today’s news that it’s exiting this scheme finally is great news. First of all it’s good news for the UK banking sector as a whole – it’s just a big milestone that shows the eventual recovery of the UK banking sector. But also it’s a significant step towards eventually returning RBS fully back to the private sector.”