Part-nationalised Royal Bank of Scotland must address issues over its capital and strategy before the government can start selling its shares, the head of the agency managing Britain's bank stakes told lawmakers.

James Leigh-Pemberton, who will become executive chairman of UK Financial Investments (UKFI) in January, said the outcome of new RBS chief executive Ross McEwan’s strategic review, due in February, would be critical in determining whether the bank is attractive to investors.

Britain is keen to sell stakes in RBS and Lloyds having pumped a combined £66 billion into the banks.

“The new plan will enable reprivatisation at least on the timetable that would have been achieved otherwise, and possibly scope to act a little faster,” said Mr Leigh-Pemberton. – (Reuters)