RBS avoids break-up with 38 billion pounds 'internal bad bank'

One of RBS's biggest 10 private investors told Reuters the restructuring was a "cosmetic exercise".

"RBS already has an internal bad bank, so it's just a question of moving some assets into it, shuffling loans around the disclosures; nothing really changes," the shareholder said.

The bank aims to run down between 55 percent and 70 percent of the assets over the next two years, and hopes to remove all the assets from its balance sheet within three.