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Banks to be re-privatised in time

Banks to be re-privatised in time

Category: Economy

Updated: 13/07/2009
First Published: 13/07/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Taxpayers have been assured that the financial institutions that were nationalised during the banking crisis will revert back to private companies when the time is right.

The call was made by UK Financial Investments (UKFI), which was set up at the end of last year to manage the Government's investments in Lloyds Banking Group, Northern Rock, Bradford & Bingley and Royal Bank of Scotland.

In its annual report, the body said it would continue to monitor when would be the best time to sell off the Government's stake in the banks.

"The circumstances under which we are likely to be able to sell shares are likely to be those in which the economy – and investor confidence – are recovering, and in which banks share prices have performed robustly," the body said.

John Kingman, UKFI chief executive, said: "Today UKFI is setting out its strategy to deliver on the tasks we have been given: maximising the value of these investments for the taxpayer, and returning the banks as strengthened institutions to full private ownership over time."

The UKFI also revealed that Government's 70 per cent stake in Royal Bank of Scotland and 43.3 per cent holding in Lloyds Banking Group means every taxpayer in the UK has approximately £3,000 invested in the banks.

It also went on to insist that it will not interfere with the daily running of the banks, but would continue to engage strongly on strategic issues which could impact value, including board membership, risk management and remuneration policy.

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