RBS SAVES £320m AFTER EXITING £bn INSURANCE POLICY

The Royal Bank of Scotland hasexited an £8bn government insurance scheme designed to bolster the bank’s financial strength.  The bank, 81% state-owned following its near-collapse at the height of the financial crisis, said it has now strengthened it capital position and that the Bank of England’s Prudential Regulatory Authority had approved its exit from the CCF.

         The bank had been paying £320m a year, initially agreed for 5 years, for the
         government guarantee, agreed four years ago as a backstop against a further
         erosion of its capital.

         This is seen as a positive step for RBS who will now not have to pay next year’s
         final instalment, boosting this year’s profits.

         Source: BBC news