**Extensive sales of Lloyds and Royal Bank of Scotland assets are expected, under EU pressure for scaling back of state-aided banks, the BBC understands.**The government, which holds a 70% stake in RBS and a 43% stake in Lloyds after last October’s bailouts, hopes to announce the sell-off plans on Tuesday.
EU Competition Commissioner Neelie Kroes has set tough conditions on Dutch and German banks receiving state aid.
The EU last week backed plans to split nationalised Northern Rock in two.