Royal Bank of Scotland has applied for a banking licence for its spin-off lender Williams & Glyn, in the next stage of the much-anticipated flotation for the challenger bank. Williams & Glyn, which was spun off from RBS under the terms of its 2008 government bail-out, is preparing to launch on the high street next year. Its much-delayed flotation is expected in the second half of 2016. The banking licence application, which runs over 16,000 pages, will help demonstrate the bank's "systems and processes are fit for purpose and shows a clear and safe journey for customers", said RBS. Earlier this month, RBS hired investment bankers from Bank of America Merrill Lynch to prepare for the spin-off. The bank hopes to sell the new lender for around £1.5bn. More than 4,000 staff are working full-time on carving out Williams & Glyn, and the project is expected to cost around £1.5bn – meaning RBS will not make money selling the unit. Jim Brown, chief executive for Williams & Glyn, said: “This is an important moment for us. Bringing together our banking licence application over the last few months has required huge effort and dedication. "This application demonstrates how we’ll create an exciting retail and commercial bank for customers here in the UK."
Royal Bank of Scotland ( RBS ) took another step towards the much delayed spin - off of Williams & Glyn by applying for a banking licence for the 300-strong network . The EU is forcing RBS to sell the branches as part of the terms of the £ 45bn mortgage bailout in 2008 , though it has already missed the November 2013 deadline after a deal to sell the branches to banks fell apart . Reports suggest that RBS is now aiming to float the branches on the stock market in the last few months of 2016 , although the W&G brand will appear in England , Scotland and Wales before then .