SHARES in Clydesdale Bank owner CYBG plunged more than five per cent in early trading this morning as it emerged the bank had been unsuccessful in bidding for a share of funds set aside to boost competition in the banking market for SMEs (small and medium-sized enterprises).
CYBG had bid for a share of a £775 million remedies package provided by Royal Bank of Scotland to satisfy European competition concerns arising from its £45 billion bailout during the financial crisis. Royal Bank agreed to provide the funding after failing to offload its 300-strong Williams & Glyn branch network – a condition of its bailout under state-aid rules.