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<p>The Chancellor has previously set out his objectives for the banks in state ownership,
including Royal Bank of Scotland (RBS). The government wants to maximise the ability
of these important banks to support the British economy; get the best value for money
for the taxpayer; and return them to private ownership.</p><p> </p><p> </p><p> </p><p>Following
a strategic review in 2013, the RBS Group committed to accelerating its return to
private ownership by improving the performance of its ‘core’ bank. This included the
creation of an internal ‘bad bank’ to house underperforming and high-risk assets,
and a commitment to removing them from its balance sheet quickly.</p><p> </p><p> </p><p>
</p><p> </p><p> </p><p>The RBS Group announced in December 2014 that it had sold a
£1.1 billion portfolio of real estate loans from its internal ‘bad bank’ to Cerberus
Capital Management, reflecting the improved economic outlook of investors for the
economy in Northern Ireland.</p><p> </p><p> </p><p> </p><p>The Government’s shareholding
in RBS is managed at arm's length from HM Treasury by UK Financial Investments (UKFI).
As an engaged shareholder, UKFI works closely with the banks’ management to assure
itself of the banks’ approach to strategy. However, UKFI’s role is to manage the investment,
not to manage the bank. Commercial decisions and assessments, including those relating
to the sale of assets, remain a matter for the bank’s independent management team.</p><p>
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