RBS chief set for crunch meeting with Bank of England

RBS building

Ross McEwan, CEO of the Royal Bank of Scotland, is to be called to a crunch meeting with the Bank of England over the state-backed bank’s capital position.

The Daily Telegraph understands that McEwan is to meet the two most senior staff at the Bank’s Prudential Regulation Authority (PRA) within the next fortnight.

The meeting, with Andrew Bailey, chief executive of the PRA, and Sam Woods, head of the PRA’s domestic UK Banks division, will consider RBS’s capital position in light of Mr McEwan’s strategy review, due to be unveiled on February 27th.

However, sources indicated that the conversation is all the more pressing following last Monday’s profit warning, which saw the bank book £3.1bn of conduct provisions and £4bn to 4.5bn of write-downs.

RBS said that, as a result of the extra items, its fully loaded Basel III Core Tier One capital ratio would be between 8.1% and 8.5% at the end of December, against an 11% target for the end of 2015.

It is understood that the PRA is keen to hear how McEwan believes he can bolster the bank’s capital position, in light of the upcoming stress tests from both the Bank and the European Banking Authority (EBA).

To access the complete Daily Telegraph article hit the link below:

Bank of England to quiz RBS over capital position 

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image: © Mark Ramsey

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