RBS confident in capital level

Tim Wallace
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RBS LAST night quit bailout backstop the contingent capital facility (CCF) after four years, indicating new confidence in its financial strength.

Under the scheme the bank paid the Treasury £320m per year for insurance which would pay out if its capital levels plunged.

If the bank’s capital ratio fell below five per cent the government would pay put up to £8bn to top it back up to an acceptable level.

The CCF had been expected to run until the end of 2014, and as the bank has left it early it will save £320m.