ROYAL Bank of Scotland chief executive Ross McEwan has denied that it made an effort to profit from customers in financial distress.
Mr McEwan said the bank was co-operating with the Financial Conduct Authority to investigate, though he said it had received no evidence to support such a claim - but that it had done "serious damage" to RBS's reputation.
A review, to be carried out by law firm Clifford Chance, will report by January 31 - with findings on specific allegations and broader banking issues.
The announcement came a day after Bank of England governor Mark Carney told MPs the allegations ought to be pursued "to the fullest extent of the law".
A report by Business Secretary Vince Cable's adviser Lawrence Tomlinson earlier this week claimed that RBS drove firms to collapse to buy back their assets at rock-bottom prices.
It focused on the bank's Global Restructuring Group (GRG), which handles loans classed as risky and is understood to have power to scrap loan deals, impose inflated interest rates and charge hefty penalties.
But the report alleged that firms not necessarily in immediate financial distress are "engineered" into GRG.
They are then hit with exorbitant rates and fees, which in some cases cause them to collapse, allowing RBS to buy their property and assets cheaply for the benefit of its West Register property arm, according to Mr Tomlinson.
The review is to be carried out on an independent basis.
The bank said: "RBS continues to work closely with the FCA on the establishment of this review. The bank will share all findings with the FCA."
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