U.K.-based Nationwide Building Society secured an investment of £50 million in the second round of Royal Bank of Scotland Group PLC's £775 million program to boost the U.K.'s business banking market, the Financial Times reported May 14.
The program, under which RBS will award £425 million to rival banks to increase competition in the British banking sector, is part of the group's bailout agreement with the U.K. government during the financial crisis. The bank must also set aside an additional £350 million to encourage its users to move to alternate providers, the FT said.
Additionally, Investec PLC and Co-operative Bank PLC were granted investments of £15 million each, the publication said, with all three prize-winners pledging to match the RBS awards with their own investments. Co-op Bank also aims to create 270 jobs in the U.K. to bolster the country's sector for small and medium-sized enterprises.
In the first round of awards earlier this year, Metro Bank PLC was granted £120 million, Starling Bank Ltd. £100 million and ClearBank Ltd. £60 million.