Royal Bank of Scotland has been fined £56 million by financial regulators for a system crash that left millions of customers unable to make or receive payments. As Sonia Legg reports it's the latest in a series of fines imposed on the part-state owned banks
It won't happen again - the promise from Royal Bank of Scotland after it was fined £56 million by financial regulators for IT systems failures. An outage in 2012 affected 6.5 million customers and raised concerns about the resilience of the group's technology. Simon McNamara is RBS's Chief Administrative Officer. SOUNDBITE: Simon McNamara, CAO RBS, saying (English): "We've invested the best part of 750 million pounds into capabilities that give us a much better chance of avoiding these issues in the first place and then importantly when issues like this occur, because we will have some failings in our infrastructure that they're invisible to the customer." The 80% state-funded bank had to pay 175 million in compensation. Britain's Business Secretary called it another banking industry disaster. (SOUNDBITE) (English): BUSINESS SECRETARY VINCE CABLE, SAYING: "Unfortunately, what happened was that RBS in the Fred Goodwin days was trying to become a big global bank and their machinery became utterly decrepid and the management are now putting that right but far too late." The breakdown may have also delayed the government's plans to sell off its stake in the bank. (SOUNDBITE) (English): BUSINESS SECRETARY VINCE CABLE, SAYING: "We want to see more competition in banking but RBS could not be broken up because the IT system was out of date and hopelessly inefficient and it just reminds us how much bad behavior and bad management lay behind this bank and indeed others." RBS says £6 million pounds was taken off its wage bill after the incident as a result of some staff - the CEO included - forfeiting pay and bonuses. Chris Beauchamp is a market analyst from IG. SOUNDBITE: Chris Beauchamp, market analyst, IG, saying (English): "It is a reminder that of course RBS took their eye off the ball of its important consumer business of banking services and it needs to be a lot more responsive, especially now that it continues to have that government stake behind it." The fine wasn't the only bit of bad news for Britain's banking industry. A legal challenge to a limit on bankers' bonuses was rejected by Brussels. That could fuel rising anti-EU sentiment in Britain. And it won't help the City of London where most of the bankers hit by the cap are based.