Royal Bank of Scotland cancels $13.03 billion insurance policy

The Royal Bank of Scotland P.L.C. has cancelled an £8 billion ($13.03 billion) government insurance policy, saving it an annual payment of £320 million ($521.5 million), BBC reported.

The Contingent Capital Facility "was an arrangement which meant that RBS could be confident of receiving £8 billion ($13.03 billion) from the Treasury if its capital was eroded in a dangerous way by losses," BBC's business editor Robert Peston said.

In the past, the bank suffered IT meltdowns and was hit with a $100 million fine over sanctions-busting allegations.

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