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Britain’s Royal Bank of Scotland on Friday said it would create an “internal bad bank” to manage 38 billion pounds ($ 61 billion) of its riskiest assets, avoiding a split into two so-called good and bad banks.
The 81 per cent state-owned bank also announced a pre-tax loss of 634 million pounds in the third quarter.
The internal bank will be called RBS Capital Resolution. RBS said it planned to remove the assets, which consume 20 per cent of its capital, from its balance sheets over the next three years.
Chancellor George Osborne said the bank’s “new direction” would mean it became “a boost to the British economy instead of a burden.”
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