Recruitment delay hits banking fund

Royal Bank of Scotland
Royal Bank of Scotland

A failure to appoint executive directors on time has been blamed for putting the distribution of a £775m banking competition fund nearly six months behind schedule.

Challenger banks, such as Metro, Starling, TSB and CYBG, have been scrambling to prepare bids for the funding after the Government said the application process would launch in the first half of 2018, but have been waiting months for an update.

The cash, which comes from Royal Bank of Scotland as part of conditions attached to its £45bn Government bailout during the financial crisis, has been delayed due to recruitment of executives to the newly formed Banking Competition Remedies body (BCR).

The new timeline, “reflects the later than anticipated ... appointment of the two current directors of BCR and the knock-on effects arising”, the BCR said. It will start accepting bids on November 1.