RBS, Lloyds, Barclays and HSBC shares all fall on FTSE 100 on RBS delay reports

RBS is required by the EU to sell off the branches in exchange for the substantial amounts of state aid it received during the financial crisis.

Potential bidders have until around Easter time to put forward a bid, however sources close to the matter told Reuters that the sale may be postponed if no suitors can come up with a good offer.

The loss-making branches come with a price tag of one billion pounds. In addition any potential buyer will also have to refinance three billion pounds in support from the Bank of England.

The most likely buyer is Santander however other contenders include fellow Spanish Bank BBVA, Virgin and National Bank of Australia.

By 14:15 shares in RBS were down 2.38 per cent to 38.53 pence per share, shares in Lloyds Banking Group were down 1.55 per cent to 52.82 pence per share, Barclays dropped 0.71 per cent to 342.55 pence per share and HSBC fell 1.29 per cent to 696.70 pence per share.