Royal Bank of Scotland (RBS) has confirmed it has no plans to split into two banks.
However, it revealed it will be creating an internal 'bad bank' where £38 billion of assets are set to be stored.
RBS confirmed its intentions in its latest financial results, which reveal that the bank made a pre-tax loss of £634 million for the third quarter.
A review is being launched by the bank into the way it treats individual customers.
The RBS plan to create an internal bank for bad assets was welcomed by the Bank of England, which said: "These actions should create a more resilient institution that is better able to support the real economy without any expectation of further government support."
However, the share price of RBS has dipped today on the back of the news it made a substantial loss between July and September this year.
Its stocks were trading 3.6 per cent lower on the London Stock Exchange at 08:25 GMT this morning (November 1st).
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