RBS withdraws from toxic asset scheme

The Royal Bank of Scotland (RBS) has exited the government's Asset Protection Scheme designed to insure against toxic assets.

RBS has now made its final payment to the scheme, which provides insurance for banks' riskiest assets, the BBC reports. Industry commentators are describing the move as a historic turnaround for the bank, as exiting APS will enable the state to start selling its 82% holding in the lender. Since the scheme was set up in 2009, RBS has managed to reduce £282bn worth of toxic assets to £100bn as it sold off non-core businesses and loan portfolios. It has paid £2.5bn in insurance costs for the scheme. In a statement from the bank, chief executive Stephen Hester said: "The APS has played a ...