Britain should end the uncertainty over long-term plans for state-controlled Royal Bank of Scotland, a senior Bank of England official said on Wednesday.
Reuters reports that Paul Fisher, the BoE's markets director, said RBS's ability to attract investors and sustain lending was being hampered by a lack of clarity over when it would be returned to the private sector and whether it might be split up.
Senior lawmakers are expected to report shortly on whether it would be better to break up RBS instead. Outgoing Bank of England Governor Mervyn King has said RBS would have benefited from a much more radical restructuring.
Fisher said this lack of clarity was damaging.
'As a matter of market management, I think it is the uncertainty about RBS which has been holding investors back', Fisher said at an investment conference in London.
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