The U.K. Treasury is set to name Godfrey Cromwell chair of a new independent body that will supervise an £800 million handout of funds by Royal Bank of Scotland Group Plc to smaller banks, Sky News reported.
The appointment of Cromwell, a former executive at Barclays Plc, will represent a major step toward RBS' fulfillment of its European Commission-imposed state aid requirements in exchange for its £45.5 billion bailout in 2008, according to the report.
In September 2017, the EC signed off a roughly £835 million package of measures designed to ameliorate RBS' failure to sell the network of branches that was to be called Williams & Glyn.
The measures include a £425 million capability and innovation fund to be overseen by the new administrative body, and a £275 million fund for rival banks to persuade small and medium enterprises customers to switch their accounts from RBS.
Cromwell, whose appointment is expected to be announced this week, will lead a three-person panel supervising the distribution of the two funds, according to the Sky News report.
