LONDON, April 3 Reuters The British government has extended a trading plan to help cut the taxpayer39;s stake in NatWest by another two years, as it chips away at its remaining 41.5 holding with small sales after a recent bout of global banking volatility.

A series of sales returned the bank which was bailed out at the height of the 200709 global financial crisis to majority private ownership last year.

The trading plan involves dripfeeding further stock into the market and is one of the government39;s main methods of reducing its stake.

The government said it would only consider sales of bigger chunks to private investors, or directly to NatWest, when they achieve value for money for taxpayers.

Investor confidence in the wider banking sector has been shaken in recent weeks by the collapse of U.S. tech lender Silicon Valley Bank and the emergency rescue of Swiss giant Credit Suisse, hitting banking stocks globally.

NatWest39;s stock has fallen nearly 10 over the past month, but remains about flat on the start of the year. The bank39;s stock was up 1.3 in early trading on Monday.

The lender bought 1 billion poundplus 1.23 billionplus blocks of stock directly back from the government in both March 2021 and 2022, but has not yet done anything similar this year.

When asked for comment, NatWest pointed to its annual report in February that said it had the capacity to do more directed buybacks in future.

Britain39;s finance ministry said on Monday its trading plan had…