RBS boss says that privatisation is a good thing for the bank

(Source: Reuters)

RBS chief executive Stephen Hester has told BBC's Today programme that "privatisation is a good thing for RBS as well as the country". The partly state-owned bank is due to be re-privatised at some point, and it appears that Hester is keen for this to happen sooner rather than later. The bank boss said that clean up of the bank should be complete next year.

The Centre for Policy Studies' Ryan Bourne has written on why we should quickly put RBS back into private hands:

Longer-term state ownership, however, blunts decision-making, depresses value and hinders long-term competitiveness. It distorts competition by offering an explicit guarantee to certain firms and invariably leads to politically-directed lending decisions. In fact, it would be better to realise Sir Mervyn King’s ambition of getting the semi-nationalised banks back into the private sector as soon as possible.

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