Threadneedle and Schroders are among the City firms that have been approached about buying a stake in the 316 RBS branches the bank has put up for sale, according to reports.
Royal Bank of Scotland is facing the prospect of a £500m fine over its role in the LIBOR interest rate-rigging scandal.
The scale of the fine due to be levied on the Royal Bank of Scotland (RBS) for its attempts to manipulate the Libor interest rate could be as high as £500m, according to reports.
Fund managers and strategists have begun reducing exposure to sterling, amid fears rising inflation and the threat of a UK downgrade could derail the pound.
Two executives at Royal Bank of Scotland are reportedly under pressure to step down as US and UK regulators are concerned about the culture of the investment banking division at the bank.
The final cost to banks of the PPI mis-selling scandal could be as much as £25bn, almost double the figure the banks have estimated so far.
The LIBOR-rigging scandal that engulfed the banks in 2012 further dented their badly tarnished reputation and dealt another blow to public confidence, leaving investors uncertain how to play the sector.
A transatlantic banking watchdog would protect American and British taxpayers from bailing out banks which are too big to fail, under new plans.
State-owned lender Royal Bank of Scotland(RBS)has predicted it could take ten years to fully return to the private sector, according to reports.
The state of banks' financial health remains "obscure" and means they should be avoided by investors for now, Liontrust's Jan Luthman has said.