RBS appoints new SME chief

Date: 28th October 2008

The Royal Bank of Scotland has announced the appointment of Peter Ibbetson as its new chairman for business banking.

Formerly the head of small business operations at Natwest, Mr Ibbetson will report directly to the group's chief executive, Stephen Hester.

He will take on the responsibility of communicating with the owners of small business, government representatives and figures from the banking industry in a bid to improve relations.

Speaking to the Financial Mail, Mr Ibbetson said: "I have never seen such a need for a liaison between all these elements."

He stated that few of the bank's 2,500 small business clients have probably experienced a recession before, and that this may have caused complacency to appear in recent years.

"We all need to understand what it's like to lie awake in a cold sweat at night because we don’t know if our bank will be there or if our creditors will pay," he added.

Last week, the British Bankers' Association pledged its ongoing support to the UK's small business sector.