Royal Bank of Scotland (RBS) has dismissed reports that it plans to merge with Banco Santander Central Hispano. Spain's largest banking group is a major shareholder in the Royal Bank.
Although the bank remains committed to the strategic partnership with Santander, a full-blown merger has now been ruled out.
RBS chief executive Fred Goodwin has repeatedly said that he does not feel merger with a European bank will deliver benefits to shareholders. Although Goodwin is thought to be keen to expand his bank's reach, a partnership or merger in the US is thought more likely.