Page 29 - RBS GRG F Teaching Note

Recovering capital, it was having to hold in reserve, in this

way, freed up this regulatory capital obligation which was

one of the most important metrics by which the bank’s

success was measured after the crash. In this way, RBS did

not have to hold its own capital, which it could then use to

help grow the business. It was the value of this that 500 GRG

relationship managers were trained to calculate. (25 case study)

Sach’s GRG strategy was, as may be seen from diagram 8,

highly successful allowing him to free up tens of billions of
pounds of core capital from the bank’s reserves.