RBS changes may cost up to 5,000 jobs

RBS, which is 83 per cent state-owned, has launched a review into its Global Banking and Markets decision amid falling revenues and mounting regulatory pressure, reported a Sunday newspaper.

Draft proposals, which will be influenced by the final outcome of reforms including recommendations by the Independent Commission on Banking, would see European outposts cut out of the investment banking operation and focus placed on its British and United States operations.

Earlier this year RBS said up to 2,000 jobs could go as it revealed its exposure to Greek debt and provision to cover compensation for mis-sold payment protection insurance tipped it to a half-year loss of £794m.The bank declined to comment yesterday.