Royal Bank of Scotland is expected to put small business lending back in the hands of its retail division and branch managers.
Last October, Sir Andrew Large, deputy governor of the Bank of England, published a critical report into the British lender’s handling of small business customers.
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At the time, RBS said in a press release: "RBS will ensure two thirds of its lending decisions are made locally and by sector specialists."
It has now been reported that the bank intends to do so by putting small business lending back in the hands of branch managers.
Joseph Dickerson, a banks analyst for Jefferies, said the move would make sense.
He said: "Small business lending is in the DNA of the retail bank in a way that it isn’t in the corporate division.
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By GlobalData"If this happens, it would look like a good move to me."
RBS CEO Ross McEwan is expected to announce the plan alongside the bank’s full year results on 27 February.
The lender is currently being investigated for allegedly mishandling some of its small business customers.
An inflammatory report by UK government advisor Lawrence Tomlinson alleged that the bank had forced small businesses to the wall in order to buy their assets at a reduced price.
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