VIRGIN Money has confirmed a £100m boost from US tycoon Wilbur Ross as it gears up to launch itself into high street banking.

The American billionaire, who made his fortune investing in struggling steel and oil companies, will take a 21% stake in Virgin Money through his WL Ross investment vehicle as part of the deal.

Virgin said the investment would provide fresh capital to allow it to speed up the expansion of its full service retail bank and help it create a branch network.

The firm is thought to be making a play for the UK high street with a bid for 318 Royal Bank of Scotland branches being sold off under competition rules.

Virgin was expected to face stiff competition for the RBS branches as other potential buyers circled ahead of an initial bid deadline.

If Virgin fails to win the RBS network, the group has plans to enter the high street – opening 70 branches by 2015 and setting up a £10bn loan book.