The Royal Bank of Scotland is reportedly preparing to raise billions of pounds from a share sale just months before the next general election.
At least 10% of its stock is likely to be sold at the end of 2014 a move that could raise £5 billion for the Government ahead of a 2015 election.
It would be the first time cash was returned to the taxpayer since the Government spent £45.5bn bailing out the lender in the wake of the financial crisis in 2008.
RBS declined to comment, but the report comes amid further pressure on Chancellor George Osborne to reduce Government debt after ratings agency Moody’s downgraded the UK’s AAA credit rating to AA1 on Friday.
The lender will announce its full-year results on Thursday.
