LCC Broadcast News Room

Shadow Chancellor George Osborne has criticised the bank for paying out bonuses of £1.3 billion when it hasn't made a profit.

The bank which is 84% owned by the taxpayer has reached it's lending targets for homeowners, but has failed to reach it's target for small businesses.

However, while bad debts have risen from £7.4billion to £13.9billion, the banks chief executive said these have peaked and the bank will make a profit.  He also said that they would be pay the 'minimum they can get away with', but they must give competitive bonuses to key staff.

While bonuses will be paid out to employees, Mr Hester the Chief Executive has refused his £1.6million bonus.

RBS is the second bank to report 2009 results with Barclays reporting profits of £11.6billion.

Is it fair that RBS is paying out bonuses when it's made a loss?  Have your say below.