Big-money deal slowdown hits RBS operations

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.