The Royal Bank of Scotland has appeared on a global list of the world’s worst performing banks, as the UK as a whole slumped in its cherished global banking position.
RBS made it in at 25 on the list of the world’s biggest loss making banks. It was not the worse in the whole of the UK though, with Lloyds creeping into the top 10.
According to the list, RBS made a loss of $1.1bn (£700m). This put it at number 21 on the list. For it’s part, Lloyds made a $5.4bn (£3.4bn) loss, putting it ninth.
These are huge figures and show what a shift there has been in the use of banks over recent years. Many in the business community would certainly know this first hand, preferring to secure much of their commercial finance in Scotland through other avenues.
For example, Scottish factoring companies are helping many, particularly with invoices being paid later and later.
While the news does not reflect well on the UK banking industry, it was not the worst news to come out.
Since 2006, the UK’s banking market has lost much of its gloss.
Still claimed by bankers to be key to the UK on a national stage, the fact that the sector’s share of global profits has fallen from nearly 11 per cent to barely five per cent suggests its importance is severely waning.
The real strength is in China. In 2007, the Asian superpower had just four per cent of the share of the world’s banking profits. In 2011, it was just short of 30 per cent.