RBS was found to have “systematically” mistreated businesses by an FCA review commissioned in 2014

The Financial Conduct Authority decided not to publish a highly critical investigation into Royal Bank of Scotland’s systematic mishandling of thousands of small and medium-sized companies because it feared being sued for “unfair treatment” by the bank.

Despite acknowledging the public interest in issuing its full investigation into the bank’s Global Restructuring Group, the FCA concluded that to do so would expose it to an “unacceptable risk of successful legal action by current/former RBS managers”, internal board minutes seen by The Times show.

The City regulator also discussed the “risk” that if the full document was published it “may raise expectations among smaller banking customers about the prospect of obtaining significant redress or compensation”.

Almost 6,000 small and medium-sized companies went through GRG between 2008