* RBS deputy CEO says bank to help support economy
* RBS in touch with state shareholder UKFI almost daily
* Says remuneration changes a competitive disadvantage
* RBS cutting thousands of global markets jobs "as we speak"
* Home repossessions about 120 a month, vs 100 a year ago
By Adrian Croft
LONDON, March 19 (Reuters) - Royal Bank of Scotland will use funds received from taxpayers to support the British economy and is in almost daily contact with the body managing the government's stake, a senior executive said.
"We are absolutely determined to use that support as a way of firstly supporting the UK economy through the difficult few years ahead," deputy chief executive Gordon Pell said on Thursday during questioning by British lawmakers.
RBS, majority owned by Britain following bailouts to keep it afloat, was working closely with UKFI, the agency responsible for managing the government's stake, Pell said.
"We're now in almost daily touch with them in terms of responsibilities we share despite the fact that, as far as possible, we will attempt to manage this business as a freestanding commercial entity," he told members of parliament's Scottish Affairs Committee.
"There are realities, there are conflicts in there, and we will have to try to manage that sensibly and responsibly."
Pell said one example was changes to remuneration policy put RBS at a disadvantage when competing with other banks.
"We now probably stand in the cleanest position in terms of banking remuneration in the world and, quite frankly, that causes me considerable competitive problems because I still have to face off to banks who don't have those forms of restrictions."
RBS was still in discussions about its plan to cut 2,700 jobs in Britain including "some hundreds" in Scotland, Pell said, adding the bank was also "shedding thousands (of jobs) as we speak in the global markets businesses".
Pell said RBS's retail bank was "not going to enjoy the next couple of years" given the deepening recession in Britain. "I would actually say I think it's quite unlikely that many UK banks will make much of a profit next year full stop," he said.
In terms of house repossessions, Pell said the rate was probably running at about 120 a month compared with about 100 a year ago. "We have not been experiencing the sort of huge growth in repossessions you have seen reported in the papers and reported at many of our competitors." (Additional reporting by Rosalba O'Brien; Writing by Paul Hoskins; Editing by Dan Lalor)