UK to assess impact of RBS Williams & Glyn sale on competition

MAY 28, 20152:57 PM

[LONDON] Britain's competition watchdog has been asked to assess the impact of the planned spin-off of new bank Williams & Glyn for competition in the UK banking sector, so the government can judge if more needs to be done.

Royal Bank of Scotland has been ordered to sell the Williams & Glyn business, which consists of 307 branches, as a cost of taking state aid in the 2007/09 financial crisis. It must sell it by the end of 2017.

The UK government wants the sale of Williams & Glyn to improve competition in the industry, and the Treasury said on Thursday the Competition and Markets Authority (CMA) has been asked to assess the likely impact. It said the Prudential Regulation Authority will also assess whether the bank has a viable and sustainable business model.

The CMA will report its findings in July 2015, and the Treasury and RBS will then consider the findings and agree appropriate next steps.

REUTERS