Strict lending the price for stable economy, says RBS
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Stricter mortgage lending is the “price for a stable economy” says the Royal Bank of Scotland chief executive Stephen Hester.
In an interview with German newspaper Welt am Sonntag, Hester also says he would be “disappointed” if the government did not begin the process of selling its shares by next year.
Banks have been criticised by politicians for not restricting lending for mortgages and small businesses but Hester believes it is necessary.
The government acquired an 83% stake in RBS to prevent it from collapse at the height of the financial crisis.
Since then Hester has ran down the assets of RBS and reduced its risks with the aim of acheiving a double-A credit rating by next year.
He also admitted that the 2007 acquisition of ABN Amro had “clearly been a big mistake” and was in the process of selling parts of the Dutch bank.
