Page 9 - RBS GRG F Teaching Note

Bail-in – The UK is one of the first countries to adopt a

statutory bail-in power which enables the Bank of

England to expose certain creditors of a failed bank to

loss by writing down or converting their interests into

new capital. This ensures that the critical functions a

bank provides to the economy can be continued in the

event of its failure. This is a key tool to end the problem

that banks are considered too big to fail.

Less exposure – The banks have restructured their
balance sheets to reduce exposures to riskier trading

assets.

Stress tests – The UK’s largest banks take part in both

the Bank of England’s and European Central Bank’s

stress tests. These confirm the bank’s financial.

Asking the question ‘how would you rank Ross McEwan as a

CEO’ allows a rationale to be presented and argued? The list

of RBS’ competitors, as shown in diagram 1, gives an insight

into Ross McEwan and his performance as leader of RBS.

Although very limited and somewhat flawed it nevertheless

gives a flavour of how these CEO are ranked.