New report proposes to split RBS

Suzie Neuwirth

PLANS to privatise RBS may be delayed after a draft report from the Parliamentary Commission on Banking Standards has called for the split of the state-backed lender into a good bank and a bad bank.

Commission members have until Monday to formulate their views and will have to finalise the report next week, according to the BBC’s Robert Peston.

George Osborne and David Cameron have previously rejected the idea of splitting the bank, but the report argues that it would improve lending conditions for small firms.

RBS announced last month that it had returned to profits in the first quarter of 2013, back in the black for the first time in 18 months.