Royal Bank of Scotland is planning to restructure its balance sheet through a programme

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which may involve buying back of around 10 billion pound of the British bank's debt, a media report said.

The Financial Times said in a report that RBS is planning a vast balance sheet restructuring in an attempt to boost its capital strength and its standing with bond investors.

"The move could involve at least 10 billion pound of the bank's 28 billion pound debt being bought back at a premium to current prices," the report said.

This would be similar to moves taken by other banks including Lloyds TSB, which in December unveiled a 10 billion pound deal as part of a 23.5 billion pound capital restructuring.

Attributing to people close to the bank, the report said that Bruce van Saun, finance director and David O'Loan, capital management chief, are still deciding on the details of the programme.

Saun is expected to announce the plan within the next fortnight, they said. RBS, which is 70 per cent owned by the UK government, is already paying the Treasury four per cent fee for an eight billion pound contingent capital facility. But it may seek a way to replace at least some of that facility in the open market, FT reported some bankers as saying.