Royal Bank of Scotland said today it would begin a dual-track trade sale process of its William & Glyn banking business in the first half of 2016.
This comes after it said it had attracted informal interest from buyers.
RBS had been preparing to sell off the unit via an initial public offering, but will now also consider a full sale of the business while it waits for a banking licence from Britain's financial watchdogs.
RBS had committed to a sale of Williams & Glyn before the end of 2017, under terms of its bailout at the peak of the 2007/2008 financial crisis.
"Separating out the Williams & Glyn business is a complex process, but we remain focused on meeting our state aid obligation, achieving full divestment by the end of 2017, and reaching the best outcome for shareholders, customers, and staff," RBS chief executive Ross McEwan said.
As at the end of the third quarter, Williams & Glyn had 1.8 million customers, net loans and advances of £20 billion and customer deposits of £24 billion.
The former CEO of Ulster Bank, Jim Brown, was appointed CEO of Williams & Glyn earlier this year.
