Royal Bank of Scotland (RBS), which is 83 percent state-owned, is seeking to restructure its investment banking division, The Press Association reports. The move may cut the size of its investment banking arm by at least one-third, putting 5,000 jobs at risk. A review of the firm’s Global Banking and Markets division has been triggered by falling revenues and mounting regulatory pressure.

The proposal will see European outposts cut out of the investment banking operation and focus placed on its U.K. and U.S. operations. Earlier in 2011, RBS warned over eliminating 2,000 jobs as it launched its exposure to Greek debt and provision to cover compensation for mis-sold payment protection insurance (PPI) tipped it to a half-year loss of £794 million.

Click here for the story from The Press Association.