Malta Independent - - WORLD -

Royal Bank of Scot­land fails stress test

The Royal Bank of Scot­land says it will cut costs and shed ad­di­tional risky in­vest­ments af­ter fail­ing the Bank of England’s lat­est stress test, de­signed to find out whether lenders could sur­vive an­other fi­nan­cial cri­sis.

RBS, which is 73 per­cent-owned by the govern­ment, was the worst per­former among seven ma­jor U.K. banks.

The cen­tral bank says the tests also found weak­nesses at Bar­clays and Stan­dard Char­tered based on their bal­ance sheets at the end of last year, but no fur­ther ac­tion was needed be­cause both have an­nounced plans to in­crease cap­i­tal to re­quired lev­els.

RBS says it has al­ready taken steps to im­prove its fi­nances, in­clud­ing rais­ing 2 bil­lion pounds from in­vestors. It agreed to take fur­ther ac­tion to cut costs and re­duce risky as­sets.

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