RBS investment banking scaled down

Chancellor George Osborne revealed plans to further scale down the investment banking arm at RBS and shift the taxpayer-backed bank's focus to the UK.

RBS, which was left 83% owned by the state following a £45 billion bailout, has already halved its investment arm in recent years.

But Mr Osborne today said the bank could "go further" in its reforms and revealed it will shift its business strategy further towards personal banking, small businesses and corporate banking.

The investment arm would continue to support the bank but it would make "significant reductions" and would scale back riskier activities, the Chancellor added.

PA