With its latest financial report, RBS has begun to court the credit market by disclosing far more information about its current performance. This is clearly a movement in the right direction.
However, it is impossible to tell from this disclosure if management actually believes RBS has nothing to hide or management is cynically using more disclosure to highlight areas where RBS looks good.
Ultimately, the only way to know if RBS has nothing to hide is if RBS sets the global standard for disclosure by making it possible for market participants to analyze all of its investment and borrower privacy protected lending positions on a current basis.
If RBS management were to announce that they were going to disclose this current asset level data, then the credit market analysts would know that RBS has nothing to hide and its ability to access funds from the capital market at lower costs would be significantly enhanced.
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