RBS Chairman Signals Long-Term Investment In Bank Of China

The chairman of Royal Bank of Scotland signalled in an interview that the group would hold on to its stake in Bank of China for the long term. Gordon Pell's comments to the Financial Times came in spite of RBS's

By None

The chairman of Royal Bank of Scotland signalled in an interview that the group would hold on to its stake in Bank of China for the long-term.

Gordon Pell’s comments to the Financial Times came in spite of RBS’s financial struggles and the increase in value of its stake in Bank of China, one of the Asian country’s big four state-owned lenders.

RBS has had to deal with huge writedowns and the blockbuster takeover of Dutch bank ABN Amro in recent months, and said last month that its 12-billion-pound rights issue had received a take-up rate of more than 95%.

“In China, it is important to pay attention to long-term relationships,” says Pell. “If you think that you can charge in and out, then you have misread how to do business in the country.”

An RBS spokesperson said in December that the banking group was actively seeking expansion in China’s banking sector.

It already holds an 8.25% stake in Bank of China, but under current regulations, foreign institutions cannot hold more than 20% of a domestic financial group in China.

«