View source for Royal Bank of Scotland

== History ==

The [[Royal Bank of Scotland|RBS]] was established in 1727 by Royal Charter in Scotland. It was one of the oldest banks in the UK, with a history that spans over 290 years. The bank was founded by a group of Scottish businessmen and was initially based in Edinburgh, where its headquarters remain to this day. 

[[Image:Detail-65436.jpg|thumb|center|A large, modern building with the Royal Bank of Scotland logo prominently displayed.|class=only_on_mobile]]
[[Image:Detail-65437.jpg|thumb|center|A large, modern building with the Royal Bank of Scotland logo prominently displayed.|class=only_on_desktop]]

In its early years, the bank played a crucial role in the development of the Scottish economy, providing loans to businesses and acting as a central bank before the establishment of the [[Bank of England]]. The bank issued its own banknotes, a practice that continues to this day, making it unique among UK banks.

In the 19th century, the bank began to expand beyond Scotland, establishing branches in London and other major cities. This expansion continued into the 20th century, with the bank establishing a presence in international markets.

== Expansion and Acquisitions ==

The Royal Bank of Scotland embarked on a series of acquisitions in the late 20th and early 21st centuries that significantly expanded its operations. In 2000, it acquired [[NatWest]], a larger bank in England and Wales, in a deal that was the largest in British banking history at the time. This acquisition significantly increased the bank's presence in England and Wales and made it one of the largest banks in the UK.

In 2007, the bank led a consortium that acquired [[ABN AMRO]], a Dutch bank, in a deal that was the largest in global banking history. However, this acquisition proved to be disastrous for the bank, as it significantly increased its exposure to risky assets at the onset of the [[Global Financial Crisis|global financial crisis]].

== Global Financial Crisis and Government Bailout ==

The global financial crisis of 2008 had a significant impact on the Royal Bank of Scotland. The bank's high level of exposure to risky assets, particularly those related to the US subprime mortgage market, led to significant losses. In October 2008, the UK government stepped in to rescue the bank, injecting £45 billion of capital in the largest bank bailout in history.

As a result of the bailout, the UK government became the majority shareholder of the bank, owning 84% of the shares. The bank was required to sell off a number of its assets as a condition of the bailout, including its insurance operations and a number of its international businesses.

== Post-Crisis Restructuring ==

Following the financial crisis, the Royal Bank of Scotland underwent a significant restructuring. The bank sold off a number of its non-core businesses and focused on its core UK and Ireland operations. It also significantly reduced its investment banking activities and focused on its retail and commercial banking operations.

In 2015, the bank announced that it would further simplify its structure and become a more UK-focused bank. As part of this strategy, the bank sold off a number of its international businesses and reduced its investment banking activities.

== Current Operations ==

Today, the Royal Bank of Scotland operates as a retail and commercial bank, with a focus on the UK and Ireland. The bank offers a range of products and services, including current and savings accounts, mortgages, credit cards, and loans. It also provides wealth management, insurance, and corporate banking services.

The bank operates under a number of brands, including RBS, NatWest, and [[Ulster Bank]]. It has a significant presence in the UK, with over 700 branches and around 19 million customers.

== See Also ==

* [[Banking in the United Kingdom]]
* [[History of banking]]
* [[Financial crisis of 2007–2008]]

[[Category:Banking]]
[[Category:History of banking]]
[[Category:Financial services companies of the United Kingdom]]