EU regulators approve RBS plan to help challenger banks

BRUSSELS (Reuters) - EU state aid regulators formally approved on Monday a British plan allowing bailed-out lender Royal Bank of Scotland <RBS.L> to fund about 835 million pounds ($1.1 billion) to boost competition by helping challenger banks.

EU regulators approve RBS plan to help challenger banks

EU regulators approve RBS plan to help challenger banks

The British government had reached an agreement in principle with the European Commission on July 26 after RBS failed to sell a business banking unit Williams & Glyn as one of the conditions of its 45-billion-pound rescue.

"The package targets a transfer of a 3 percent market share in the UK small- and medium-sized banking market from RBS to challenger banks," the EU competition enforcer said.

It said the plan involves the setting up of a capability and innovation fund and an incentivized switching scheme.



(Reporting by Foo Yun Chee)

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