RBS is set to restructure its global transaction services (GTS) division, which includes trade finance.

It will merge GTS with the global banking & markets (GBM) division to create a new wholesale banking arm called markets & international banking (MIB).

The merger follows news that the bank has axed a further 3,500 jobs as part of its plans to restructure and shrink the investment banking arm.

RBS plans to exit, via sale or closure, the cash equities, corporate broking, equity capital markets (ECM) and M&A businesses and is exploring options with potential buyers.

The cuts will take place over three years and will affect jobs in both the UK and abroad.

A spokesperson at RBS tells GTR that as yet there are no planned job cuts in the MIB division, although “there might be changes in further parts of the business structure in the future”.

The new markets & international banking (MIB) will be headed by John Hourican, RBS chief executive officer of GBM, and will have two externally reported businesses, markets business and international banking business.

GBM’s banking business and international arm of GTS will be consolidated into one integrated business called international banking. The aim of this is to simplify in-country management, enhance connectivity and reduce costs.

A source close to the bank tells GTR that “as the relationship bankers will have fewer investment banking products to distract them in the future, RBS expects an increased focus on the short-term, self-liquidating trade products in the near future”.

“We will also be focusing on capturing both ends of the transaction for our large clients. This should provide some exciting opportunities for trade. Now that the international bank contains the coverage bankers and GTS staff we expect that there will be more focus on trade products,” the source says.