Royal Bank of Scotland branch sale falling apart
Rumours in the market today suggest that Santander, the Spanish banking conglomerate, may be the only real candidate in relation to the sale of 318 Royal Bank of Scotland branches later this year. It is believed that National Bank of Australia, a prominent name in the auction process, may actually be looking to sell its UK operations which include Clydesdale Bank and Yorkshire Bank in the weeks ahead. As a consequence, it seems likely that National Bank of Australia will pullout from the proposed sale of Royal Bank of Scotland branches leaving the way clear for Santander.
There are a number of other proposed bidders in the frame for the branch sale but unofficially Santander appears to be leading the way. This is in effect a forced sale of the 318 branches in question as a means of complying with EU regulations after the company received significant financial backing from the UK government. However, with competition for the sale reducing on a monthly basis there are fears as to how much money the sale will raise and how this will affect the balance sheet of Royal Bank of Scotland going forward. Are we entering yet another difficult situation for the UK banking arena?
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