Banks challenge RBS

BOSSES at smaller banks have hit out at Royal Bank of Scotland plans for a £750m fund to boost competition.

The NatWest owner came up with the proposal after failing to spin off 300 branches under the name Williams & Glyn, a European Union requirement of its £ 45.5bn bailout. But RBS’s efforts were beset by difficulties. So instead it is hoping to satisfy regulators by doling out £750m to persuade small business customers to move current accounts to rivals.

Executives at challenger banks have been unimpressed and claim it unfairly prioritises large lenders with existing business current account services.

A spokesman for RBS defended the measures.