RBS needs to sell branches by end of next year
A plan by the Royal Bank of Scotland to sell more than 300 branches has been held back after bidders pulled out of talks.
Talks held with Spain’s Santander broke down because the two parties could not agree on a set price.
It is not known what price RBS was seeking for the business. In 2010, however, Santander made a £1.65bn offer for the branch network only for the deal to collapse two years later amid fears the cost of extricating its technology platform would prove too expensive.
RBS has been given until 2017 as part of bailout plans to sell the branches.
The company attempted to create a new bank under the Williams and Glyn brand but last month, rising costs halted those plans.
The bank has been looking for buyers for their 315 branches since then, Santander was seen as the front runner.
Potential further cuts in UK interest rates hindered that deal, as lower rates cut into proftis of High Street banks- inturn making the RBS branches less attractive to buyers.
Unfortuanately for RBS the sale comes after banks have started to begin reducing branches sizes as more customers are banking online.