According to sources in the media, the UK government may start selling its £46 billion stake in the Royal Bank of Scotland early next year.
Officials close to the development believes that the sales will take place in stages with the first tranche to be offered of around £5 billion.
However, the UK Financial Investments (UKFI), the financial body holding Britain’s £67 billion bank shares, is unlikely sell the shares until they return to profitability. The UKFI will also wait till the independent commission’s September report suggesting if banks should be broken up or weakened to improve competition, is released.
“Once the uncertainty around the banking commission has been removed, I don’t see any reason why a sale should not take place”, the FT quoted a RBS official saying.
The Treasury and RBS could not be reached for confirmation.