RBS: Lothian MSP renews call for reform

Alison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy committee, is renewing her call for reform of RBS as the publicly-owned bank posts an annual loss of £8.2billion while setting aside £576million for bonuses.

In January Alison lodged a motion in parliament calling on the Scottish Government to negotiate the transfer of RBS operations in Scotland to create the sort of local banks that exist in the USA, Japan and Germany.

The idea is supported by the New Economics Foundation, which says such banking networks work well, improving access to finance for small businesses and improving the stability of financial systems.

Alison said:

“The public owns 81 per cent of RBS so we should not have to put up with its failure to reform. Thousands of staff have paid the price while the small businesses our economy relies on are denied the lending they need to grow.

“More than ever we need a cultural shift in banking towards a more diverse sector with a focus on small businesses and serving the public. Germany’s successful network of locally-accountable Sparkassen banks are a model we should be trying to copy right now.”