RBS gets waiver from tougher U.S. capital rules

LONDON (Reuters) - British state-backed lender Royal Bank of Scotland (RBS.L) has been granted a waiver by the U.S. Federal Reserve from onerous new rules coming in next year for big overseas banks.

RBS, which has dramatically shrunk in size since needing a taxpayer bailout in 2008 that has left the UK government owning 80 percent of the company, plans to reduce its U.S. assets to below $50 billion (32.93 billion pounds) by the time the new rules come into force.

The rules will apply to all overseas banks with over $50 billion of U.S. assets. It will require firms such as Deutsche Bank (DBKGn.DE) and Barclays (BARC.L) to set up separate U.S. holding companies with strict capital and reporting requirements.

The Fed said in a notice on its website that it had approved RBS's request for a waiver from the requirement to form the U.S. intermediate holding company by July 2016.

The Fed did not give a reason for its decision.

RBS sold 29 percent of its U.S. bank Citizens (CFG.N) in September and plans to cut its stake further this year. It is also shrinking its U.S. investment bank, with the aim of getting its U.S. assets to below $50 billion.

It is part of a scaling back in the Edinburgh-based bank's overseas operations. RBS grew to become one of the world's biggest banks before the 2007/09 financial crisis, but is now focussing on its core UK retail and corporate customers.

(Reporting by Steve Slater; editing by Keith Weir)