Royal Bank of Scotland has been dropped from a list of the world’s most important banks, signifying the lender will no longer be required to hold extra capital in case it fails.
The Financial Stability Board (FSB) removed the British state-owned bank from its list of global systemically important banks that it started publishing following the 2008 financial crisis.
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The banks included on the list have to make sure they hold enough capital to cover possible losses in order to avoid being saved by the state. A decade ago, RBS was rescued from collapse by the British government with a £45.5 billion bailout. The state owns 62 per cent of the bank, having recently reduced its stake from 70 per cent.
RBS said: “We note this decision by the FSB, which reflects our progress in building a much simpler, safer UK-focused bank.”