Royal Bank of Scotland agrees sale of loan book

The Royal Bank of Scotland has today announced the sale of a €1.4 billion loan book to fund manager Intermediate Capital Group as the company looks to downsize its non-core operations. This is just the latest in a long line of deals which the company has announced to allow the 83% taxpayer owned operation to concentrate on its core operations.

The loan book in question is around 10% of the Royal Bank of Scotland's leverage loan finance book, all of which is up for sale. This is a company which was very proactive in the business arena not only handing out loans to businesses but also taking a more proactive role in the operations. In the boom years this was very lucrative for Royal Bank of Scotland but as the UK and worldwide economies turned down the company was left high and dry and in financial difficulties.

There is no doubt that the Royal Bank of Scotland which will emerge from the UK economic downturn will be very different to the one which entered the credit crunch over three years ago. This is a company which was in the eyes of many the largest and most lucrative banking operation in the world with tentacles in every market around the globe and exposure which some companies could only dream of. Oh how the mighty have fallen!