Last checked at 
(Corrects headline and paragraph 1 to make clear RBS is windingdown Rates Prime Broking and Rates OTC Clearing businesses, notits interest-rate trading businesses; In paragraph 2, addsmissing word ... our ... to quote)
By Aashika Jain
May 18 (Reuters) - Royal Bank of Scotland said onSunday it is winding down its Rates Prime Broking and Rates OTCClearing businesses as capital and operating costs increase.
RBS cited "increasing level of capital, operating costs andinvestment that would be required for our business to beglobally competitive in a market with extremely thin margins,"as the reason for winding down its Rates Prime Broking and RatesOTC Clearing businesses.
RBS' prime broking business provides clients with marginconsolidation and credit efficiency services, while its ratesOTC clearing unit aids customers in clearing interest ratescontracts that relate to over-the-counter transactions.
Investment banks across the world have been struggling withtougher regulations and low interest rates.
Barclays Plc was the first British bank to scaleback investment banking operations as its business culture faced with criticism by British regulators and it was fined formanipulating Libor benchmark interest rates. (Reporting by Aashika Jain in Bangalore; Editing by SteveOrlofsky)
