RBS to review Enterprise Finance Guarantee scheme

Following discussions with the British Business Bank (BBB) – the body established by Government that manages the scheme – the bank decided it was appropriate to examine a sample of EFG customer files. This exercise identified a number of instances where we have not properly explained to customers how borrower and guarantor liabilities work under the EFG scheme. We will now be implementing a thorough and proactive review of affected and potentially affected customers to ensure they are put back in the position they believed they would have been in.We remain supportive of the EFG scheme which has enabled us to lend to thousands of businesses who would not otherwise have been able to access bank finance, and in doing so, have safeguarded jobs and helped to contribute to the economic recovery. EFG continues to have an important role to play and RBS remains committed to the scheme.

Alison Rose, CEO Commercial and Private Banking said, “EFG is a hugely important scheme that has helped many businesses continue to trade today. This is why it is so important that our staff adhere to the highest standards to ensure that customers fully understand the features of the product. I am not satisfied that we have met those standards in all cases. Following discussions with the BBB, we have taken action to put this right. We have now made sure that EFG loans will always be given appropriately. We are implementing a thorough and proactive review of affected, and potentially affected, customers. Any customers that have been affected will be contacted directly by the bank to ensure they are put back in the position they believed they would have been in.”

The RBS Group is a large international banking and financial services company. From its headquarters in Edinburgh, the group serves over 30 million customers in the United Kingdom, Europe, the Middle East, the Americas and Asia. Our brands operate around the globe to provide banking services for individuals, businesses and institutions. We are working hard to make RBS one of the worlds most admired, valuable and stable universal banks.

The group provides a comprehensive range of financial services to retail, corporate, and financial institutions. Markets and International Banking, the Investment Banking arm of the group, offers a broad range of services enabling major corporations and institutions to achieve their global financing, transactions services and risk management objectives