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Royal Bank of Scotland

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The political, eonomic, scial and technological factors affecting RBS are discussed below: Te political, eonomic, scial and technological factors affecting RBS are discussed below: -Political factors: Oe of the biggest setbacks faced by RBS during the financial crisis was taking over of its ownership by the UK government following a crash in the credit markets. Te bank faced severe problems in raising new capital and failed in its attempt to revive its plunging profitability. I the year 2008, te UK government which was worried about the state of markets sought to take up 58pc in RBS for £ 15 billion (The Telegraph, 2011b).

&bsp; Frthermore, te collapse of the bank during the financial crisis is largely attributed to the Labour government’ s‘ lght-touch’ rgulatory regime (The Huffington Post, 2011). Acording to the FSA (Financial Services Authority) the key reasons behind the failure and near collapse of RBS was due to inadequate regulation policies apart from the failure of the top management and supervisory system. Te Labour government was also largely held accountable for its general failure to maintain the markets (BBC, 2011).

- Economic factors: Tere was a rise in public sector borrowing during February 2012 which rose by almost double than the previous year, t £ 15. 2billion. Aso, te UK consumer price inflation fell to 3. 4 in February, wich is recorded to be the lowest in almost 15 months. Tere was a sharp fall in the retail sales sector in the current year (RBS Group, 2012a). Tere was a fall in the economic growth rate in the UK which fell by 0. 3 in fourth in the financial year 2011.

Te profitability of UK banks in general and RBS in particular has increased slightly over the past couple of years, wich can be attributed to the improvement in the UK and US economy, wich have stabilized over the years (KPMG Report, 2011). -Social factors: &bsp; Te change in economic condition has brought about a simultaneous change in the social environment, wereby the bank has resorted to large scale layoffs in recent times. Rcently, RS announced laying-off of approximately 3500 employees as a of its and reorganization strategy. ...

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preview essay on Royal Bank of Scotland
  • Pages: 5 (1250 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
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