RBS to probe treatment of small business

Royal Bank of Scotland has appointed law firm Clifford Chance to conduct an inquiry into the treatment received by small business customers in financial distress, responding to suggestions it closed down viable businesses too quickly.

The move comes after an independent report by former Bank of England deputy governor Andrew Large, which was commissioned by RBS, recommended the bank look into concerns over its treatment of struggling small businesses.

RBS has also been accused by government adviser Lawrence Tomlinson of pushing struggling small firms into its “turnaround” unit, so it can charge higher fees (on the basis they have defaulted) and take control of their assets.