Announcing their first-quarter results on Friday 4th May, the Royal Bank of Scotland has said that all of its emergency loans will soon be repaid
All of the near £164 billion value of the loans came from UK and US taxpayers.
In the UK, the loans saw money coming from the credit guarantee scheme (£75bn) and the Bank of England emergency liquidity assistance (£36.6bn). From America, the US Federal Reserve loaned $84.5bn, which is equivalent to £52.4bn at Thursday May 3rd’s exchange rate.
RBS has said that it will have repaid the monies in full by the end of the week.
It follows news from Lloyds Banking Group that it will repay its similar facilities, which reached £157 billion, by the end of 2012.
Many will hope that the news could see both banks start to lend more to businesses in Scotland and across the UK. However, with many companies making the switch to Scottish invoice factoring facilities over recent months, demand could well be down in some areas.
These are still challenging times for RBS too.
They continue to receive funding from the European Central Bank. Using the long-term refinancing operation, they have a loan to the value of 10 billion Euros.
However, the bank insists that it is not using the cash as a support mechanism, but as an avenue to secure cheap lending which can in turn be passed on to those seeking commercial finance facilities.
Across Europe, many other banks are securing funding in this way.