Becoming a more sustainable bank


Becoming a more sustainable bank

Our Chief Economist Stephen Boyle blogs on the difference between the RBS of 2008 and the RBS of 2016.

Blog Author Image
Stephen Boyle
RBS Chief Economist
Blog

19 May 2016

RBS is becoming a more sustainable bank.

 

In 2008, we found out that the old RBS was not sustainable.

We didn’t hold enough capital, with just £4 of it for every £100 of risk-weighted lending. We lent more than £1.50 for every £1 of deposits customers gave us. That meant we relied on short-term funding that proved unreliable in a crisis. Some of our lending decisions had been poor; we hadn’t paid enough attention to a range of the risks which the financial crisis brought in to sharp relief. And some of our conduct had been wanting, which has led to a stream of redress costs.

By the end of 2015 much had changed. We had more than £15 of capital for every £100 of risk-weighted lending. Our deposits more than covered our loans. We held more than £150 billion of liquid assets that we could use in difficult conditions. We are clear about our risk appetite.  Our conduct is guided by our values.

Most importantly, we have changed our focus to make customers our absolute priority. Our ambition is to be the number one bank for customer service, trust and advocacy. One way we are doing that is to become a simpler and safer bank. That makes us more sustainable.

We also believe that supporting growth in Britain is what a sustainable bank should do. That’s why we have invested to support entrepreneurs. Our venture with Entrepreneurial Spark has seen us open business accelerator hubs across the UK, with more to follow.

We know that we still have progress to make. But in all respects we are more sustainable now than in 2008.

Read more about the sustainability report

Posted In

Blog

Related articles

Leading the pack on financial education

Following the release of our Sustainability Report 2015, our Director of Sustainability, Kirsty Britz explains how supporting financial education is helping today’s customers and those of tomorrow.

RBS on track to raise £1.4m for Sport Relief

RBS is on track to raise the most the bank has ever raised for a single charitable partner.

Latest news

RBS to help 2.5 million people each year to be more financially capable

RBS has today committed to helping 2.5 million people in the UK each year to improve their financial capability.

RBS to increase lending to sustainable energy sector following £1.1bn securitisation of loans to UK sustainable energy market

RBS has executed a £1.1bn securitisation deal with Macquarie Infrastructure Debt Investment Solutions (MIDIS), which will allow the bank to recycle capital and increase lending to the sustainable or renewable energy sectors.

RBS launches £1 billion Female Entrepreneurship Funding and announces targets to help create at least 50k new businesses by 2023

RBS has today announced a new £1 billion in funding through NatWest to support female entrepreneurs in the UK to scale and grow – the largest intervention by a UK lender focused specifically on female-led businesses.

Set Tab for lightbox