RBS targets Chinese bank

ROYAL Bank of Scotland, the owner of First Active and Ulster Bank, was reported to be in talks to buy a strategic stake in the second-largest bank in China.

It is understood that RBS is willing to pay up to $4 billion for as much as a 20% stake in Bank of China, but faces competition from a number of major rivals.

Banks are targeting Asia because of its rapid rates of economic growth and China is one of the most attractive markets due to the size of its population.