RBS pays $1.1bn to settle mortgage security mis-selling claims

As part of the deal, RBS is absolved of any fault. The banks says the settlement is “substantially covered by existing provisions” and will have no material impact on its core capital ratio.

RBS is still facing claims from the US Department of Justice and the Federal Housing Finance Agency.

In a statement, the bank said that "investigations may require additional provisions in future periods that in aggregate could be materially in excess of the provisions existing as of 30 June 2016".

Rick Metsger, chairman of the NCUA, said: “NCUA is pleased with today’s settlement and fully intends to stay the course in fulfilling its statutory responsibilities to protect the credit union system and to pursue recoveries against financial firms that we maintain contributed to the corporate crisis.”

In May, the Crown office announced that no-one involved in the failure of RBS will face prosecution after the UK Government rescued RBS in 2008 with a £45bn bail out.

After five years, Crown Counsel have decided that there is "insufficient evidence in law of criminal conduct either in relation to RBS as an institution or any directors or other senior management involved in the rights issue".