RBS small business policy probe

Allegations that Royal Bank of Scotland Group Plc pushed small businesses into default will be investigated as the British markets’ regulator called on other banks to review their lending practices.

The Financial Conduct Authority will consider whether to take action against the Edinburgh-based bank after a review by independent analysts, the watchdog said in a statement yesterday. The London-based regulator will also write to other banks asking them to confirm that they “do not engage in any of the poor practices alleged” against RBS in a report this week.

ritain’s largest state- owned bank would charge companies advisory fees and buy their assets at reduced prices once they were in default, government consultant Lawrence Tomlinson said in a report published on Nov 25.