Royal Bank of Scotland (RBS) has today announced that it will be leaving the Government-backed Asset Protection Scheme (APS), moving it one step closer to once again being a private company.
The £282 billion APS was set up by the Government in January 2009 following the taxpayer-funded bail-outs of both RBS and Lloyds Banking Group.
The scheme's original aim was to provide cover against RBS's toxic assets, which at the time amounted to £282 billion. That figure has since dropped to about £100 billion due to the bank selling off some of its business and loan portfolios.
RBS will make its final payment of £1.4 million to the APS this week, seeing it reach the minimum payment threshold of £2.5 billion that is needed in order to exit the scheme.
The move will help the 82% state-owned bank move further along the path towards reprivatisation.
Lloyds was able to leave the scheme a few months after it was set up.
"The APS has played a valuable role, buying time for the bank as we implemented change from the worrying days of 2009 to create the much stronger institution it is today," RBS group chief executive Stephen Hester said.
"RBS's capital, liquidity, and funding positions have been transformed in the past three years, so the time is now right for us to exit this scheme."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.