Big-money deal slowdown hits RBS operations

Published on Saturday 21 January 2012 01:53

ROYAL Bank of Scotland has revealed that a slowdown in big-ticket property deals will see a shake-up of its lending operations.

All deals in Scotland above £25 million are now being handled from Glasgow and similar consolidation will take place across the UK.

The changes affect 270 jobs across the UK in corporate banking announced a week ago though it is not known how many will be axed. It is thought some staff will opt to relocate.

“Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support,” said RBS in a statement.

“Challenging market conditions require us to make efficiencies and to deliver greater value to our customers and shareholders.

“We will do all we can to support our staff, offer redeployment opportunities wherever possible and keep compulsory redundancies to an absolute minimum.”

Other banks have reviewed their property lending practices in the light of changing circumstances in order to ensure these divisions are profitable.

The commercial property market has been particularly hard hit and few deals on the sort of scale completed in the boom are now taking place.

Many of RBS’s clients are well-capitalised international businesses and although the restructuring will mean high-end deals no longer being handled in Edinburgh or Aberdeen, as previously, these clients tend to undertake their banking needs around the world.

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The Answer

Sunday, January 22, 2012 at 06:30 AM

deleted content from the snp website ..................................................... Commenting Mr Salmond said: ............................................................ "The Royal Bank of Scotland and HBOSBank of Scotland are two major Scottish success stories. Indeed, they are the two biggest Corporation Tax payers in the UK - these two companies alone pay about the same amount in Corporation Tax as GERS allocates to the whole of Scotland. ............................................................................. "We need to build on Scottish success, as the SNP propose in our economic programme 'Let Scotland Flourish', and support it to succeed on the global stage. That will be good for the Scottish economy and Scottish jobs. ................................................................... http://webcache.googleusercontent.com/search?q=cache:BnJmvc_aa00J:adelaide112.snp.org/node/8151+site:snp.org+%22royal+bank+of+scotland%22&cd=10&hl=en&ct=clnk&gl=uk

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Colin RB

Sunday, January 22, 2012 at 12:18 AM

and hopefully will lead to some sackings

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