Commission asks for review of the structure of RBS

Commission asks for review of the structure of RBSThe parliamentary commission on banking standards has said that there should be a comprehensive review of the structure of Royal Bank of Scotland after the government officials indicated that the selling of stake in RBS will take some time.

The government has dismissed the need for a broad investigation to determine if the RBS should be split and sold as smaller components to increase competition in the banking sector. The government has against said that the breaking up of the bank into smaller units would generate significant additional costs.

The government said that it would "cause uncertainty and disruption for customers, creditors and staff. This would risk undoing much of the good work that RBS has done in strengthening the bank in recent years. As the majority shareholder, the taxpayer would ultimately bear the majority of the costs."

Chancellor George Osborne has said that the government is aiming to break up the Royal Bank of Scotland into separate entities. The government has an 82 per cent stake in the Royal Bank of Scotland and indicated that the bank might be split into a good bank and a bad bank with troubled assets. The bank had recorded a profit but was facing high level of toxic assets and the government officials have been looking for ways to revive the bank.