Lawmakers in Britain yesterday challenged public officials over whether they had allowed more than £2bn (€2.73bn) of government shares in Royal Bank of Scotland — the owner of Ulster Bank — to be sold too cheaply last month.

Britain is closer to selling part of its stake in Royal Bank of Scotland after seeing a growing appetite for the bank’s shares from financial institutions and it could offer some of the stock to private retail investors.

The son of a former Bank of England governor has been appointed chief executive of the body that manages government stakes in the Royal Bank of Scotland and Lloyds Banking Group.