Running Header: THE ROYAL BANK OF SCOTLAND (RBS)

The Royal Bank of Scotland (RBS)

The Royal Bank of Scotland (RBS)

Introduction

Royal Bank of Scotland (RBS)is one of the oldest banks. In 2008, is the largest bank of Scotland , the second of the United Kingdom and Europe , as well as fifth in the world in terms of market capitalization . It should not be confused with the Bank of Scotland. The headquarters of the bank is situated in St Andrew's Square in Edinburgh. The bank has branches and offices in Europe , in America and Asia .The group is listed on the index FTSE 100 of the London Stock Exchange . In 2005, its CEO is Fred A. Goodwin. The financial crisis of 2008 caused a drop in its stock market shares of 88.40% because of the toxic assets it held in respect of credit default swaps. At the end of November 2008, the bank was bankrupt. The British government became the majority shareholder in RBS, up to 57.9%, by acquiring for 15 billion euros of common shares and 5,000,000,000 preferred shares of EUR. This collapse is the largest ever known a British company. In January 2009, RBS announced losses for the financial year amounted to nearly 31 billion euros, the consequences of radiation of assets held by ABN AMRO, a company it acquired in October 2007. In February 2009, RBS published its financial loss of 27 billion.(RBS Annual report, 2009)

The range of services of RBS includes corporate and institutional clients need commercial banking and investment banking business, such as loans, capital clearing and settlement , debt management, debt financing , the share capital financing. The main responsibilities of the service: to provide a full range of financial services to the UK commercial, industrial, corporate and institutional clients, debt and risk management services to corporate and institutional clients worldwide. This paper aims to discuss Royal Bank of Scotland, its information, history, organizational structure, organizational change and perspective towards employees and customers.

Discussion

The course of development of the Royal Bank of Scotland

The Grand Royal Bank was established in 1727, and in 1728 became the world's first bank overdraft services. With the Bank of Scotland has always been a competitor , the attempted acquisition of Bank of Scotland in 1727-28, but in the end failed. With London slowly become the world's largest financial center in the late 19th century, began to expand to England business in 1874, the bank opened its first branches in London. The Bank of England do not want to be Scottish banks compete with their own business, so they try to deal with this problem. Later, the two regions signed a treaty, that the Bank of England will not set up branches in Scotland, and Scottish banks can only set up a branch in London. The treaty has been effective to the 1960s, but the middle has a cross-border acquisition event. In 1960, the Royal Bank of Scotland in New York opened the first branch outside the UK; existing branch of the Royal Bank of Scotland has been all over the country.

In 1981, the Hong Kong and Shanghai Banking Corporation and Standard Chartered Bank to compete for ...