The government needs to decide if it should interfere in the running of Royal Bank of Scotland and accept that if it does then taxpayers will not get as much of their value in the state-backed bank back, a leading politician said on Friday.

All of us - and that includes the Government, Parliament and British taxpayers - need to decide whether we want to run RBS as a fully commercial bank at arm's length from frequent intervention or whether we want it to be a bank on which we make special demands, ones we would not make of a commercial operation, said Andrew Tyrie, chairman of the Treasury Select Committee.

Were we to make special demands, we would have to accept that it would not sell for as much, or as quickly, said Tyrie, one of the most influential politicians on banking issues.

(Reporting by Steve Slater)