ROYAL BANK of Scotland is closing its equity capital market and corporate finance units in South Korea and cash equities businesses in Indonesia, Korea and Singapore as part of moves to cut the size of its investment bank.

The decision to close some units comes after an agreement with Malaysia’s second biggest lender CIMB, which is not buying the units, according to an internal memo seen by Reuters and confirmed by the bank.

An RBS spokeswoman said 70 employees would be hit by the closure of the units, and that it would work with CIMB to conclude the deal for other Asian units.

CIMB said this month it had entered into exclusive talks with RBS to acquire some of its Asia-Pacific cash equities and investment banking businesses.

“However, for commercial reasons we have agreed with CIMB that the cash equities, ECM and corporate finance businesses in Korea and cash equities in Indonesia and Singapore, will not ultimately transfer as part of the sale,” the memo said.

“We have, therefore, made the decision to initiate steps to wind down these businesses commencing today.” – (Reuters)