RBS must raise £2bn after failing Bank of England stress test
RBS, which is partly owned by the taxpayer, was the worst performing bank.
Royal Bank of Scotland has been told to raise around £2bn to boost its financial reserves after failing the Bank of England's annual health check of the sector.
The Edinburgh-based lender, which is 73% owned by the taxpayer, was the worst performer in the stress test.
It has drawn up a plan to bolster its resilience in case of a financial crisis.
Barclays and Asian-focused player Standard Chartered also struggled in the test, but the Bank of England said their existing plans were strong enough to cope with any additional pressures.
Its annual stress test gauged the resilience of seven UK lending giants - RBS, Lloyds Banking Group, HSBC, Barclays, Santander, Standard Chartered and Nationwide Building Society - against a global economic crisis and crashing house prices.
The Bank's financial policy committee said in light of the findings and action taken by RBS, "the banking system is in aggregate capitalised to support the real economy in a severe, broad and synchronised stress scenario".