MPs are said to be preparing to launch an investigation into the way smaller lenders were awarded portions of the £775m RBS cash pile earlier this year.

The awards come from the RBS Remedies fund, a cash pile carved out of the bank in exchange for its bailout during the financial crisis and its failure to spin off its subsidiary Williams & Glyn.


The giveaway is aimed at creating more banking options for the UK's small businesses, which are reliant on banking giants Barclays, Lloyds, RBS and HSBC for most of their services. 

According to the Financial Times, the Treasury select committee is considering a probe into both how decisions were made over which companies would be handed cash under the...