RBS is set to follow Lloyds Bank's example and put more money into its payment protection insurance (PPI) compensation fund, according to reports.
Reuters claims that the bank is to set aside a further £125m to cover compensation for the mis-selling of PPI which is expected to push its compensation fund to the £1bn mark.
The announcement, expected on Friday, will take the bill for state-owned banks resulting from the PPI scandal to almost £5bn.