The Royal Bank of Scotland Binary Options

The Royal Bank of Scotland - RBSYou should instantly put off all your trades on The Royal Bank of Scotland as the share prices of this particular banking institution have continuously been hampered by its small size and number of bad decisions in the past.

The bank has been fined because of its irregular practices, and it has still to compensate the losses incurred by its customers.

Strengths

Huge UK Government Stake – The bank has been saved by the UK Government from getting busted, and even if there are financial problems for Royal Bank of Scotland, the same will be taken care of by the taxpayers of United Kingdom. The banking institution is looking forward to selling off all the shares the government owns and this will inevitably increase the share prices in future.

Recovering Lost Ground – Although the bank has been hit severely by the financial crisis, it is slowly and steadily improving and trying to restore the lost ground. But you should know that the process is time-consuming and will undoubtedly take a lot of time before the bank returning to a profit making institution and get its book balanced once and for all.

Weaknesses

Loss of Customer Confidence – Just because the bank embroiled itself into evil activities in the past, it had a dramatic effect on all its existing customers. The customers are still in shock, and many people are bailing out their shares in this bank. The long-term confidence is positively affected, and until and unless the bank starts making profits, it will be tough on the part of Royal Bank of Scotland to restore the lost faith and confidence among its customers.

Low Business Lending – The bank has been shying away from providing money to its customers in spite of the demands and calls by the UK Government. If they want to make profits shortly, it is imperative on the part of this banking institution to start lending money with immediate effect. At the same time, the bank needs to stay away from the exotic and weird financial investment that got them into trouble in the past.

Short-Term Prediction

Because of its wrongdoings in the past, the Royal Bank of Scotland has to pay hundreds of millions of Pounds as a part of fine and compensation to the UK Government. It is likely that the bank is cutting back on its banking business in the recent times. At the same time, the share prices of the bank are very dismal, and it is nowhere near close as compared to other reputed banks in the industry.

You need to utilise all your skills into predicting in which direction the shares of Royal Bank of Scotland will move in the future. If you are trading on the wrong side, it would cost you dearly. So take your time in making the correct prediction if you want to make money in return.