RBS (NYSE: RBS) was one of many largest banks on this planet earlier than the monetary disaster of
RBS (NYSE: RBS) was one of many largest banks on this planet earlier than the monetary disaster of 2008. Its £2-trillion stability sheet was larger than most banks on the time. Nevertheless, the financial institution has modified significantly for the reason that recession. It has shrunk significantly in measurement – transferring away from a enterprise mannequin that predominantly centered on funding financial institution operations to 1 that relies upon virtually fully on conventional loans-and-deposits banking. Notably, a bulk of the reorganization began in 2012 when the financial institution slashed its funding banking actions. The big-scale reorganization plan was triggered by circumstances imposed on RBS as part of its bail-out on the peak of the recession in addition to stricter regulatory adjustments within the wake of the downturn.
However what if no such circumstances had been imposed on RBS, and it had chosen to retain a full-fledged funding banking division? Trefis solutions this query and highlights how RBS’s revenues and profits would have trended if it had continued to focus on its investment banking operations in an interactive. We give attention to developments after 2012, as that’s when the financial institution reorganized its funding banking operations.
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