RBS to create 'bad bank' with £38bn of problem assets

Royal Bank of Scotland is to create an internal "bad bank" with £38 billion of problem assets, it was announced today, avoiding a full split.

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RBS avoids 'bad bank' split

Royal Bank of Scotland today reported a sharp fall in operating profits to £438 million for the third quarter, from £909 million a year earlier. The bank is also to create an internal 'bad bank' with £38bn of problem assets, avoiding a full split.