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Future of banking
02/11/2009
Finance Secretary John Swinney has said that the Scottish Government's focus is on maximising jobs and headquarters functions in Scotland in the ongoing discussions into the future of the banking system.
Mr Swinney said:
"The Scottish Government have been in contact with both Lloyds Banking Group and the Royal Bank of Scotland, as well as the Treasury and UKRep, in the interests of securing employment and competition within Scotland's financial sector and the wider economy.
"The Lloyds situation presents opportunities for Scotland, and as and when any such reported divestments are announced, the Scottish Government will be active in seeking a buyer for Lloyds TSB Scotland which increases competition in the markets and helps secure Scotland's broader economic interests. These possible developments regarding Lloyds also provide potential for the issue of the Lloyds TSB Foundation to be addressed, and we believe it is important that this opportunity is taken advantage of.
"In terms of the Royal Bank of Scotland, we are concerned about the implications of any forced sale of the insurance division, which employs substantial numbers in Scotland, particularly Glasgow. They must not be disposed of in a way that would be damaging to jobs, and therefore the Scottish Government will be seeking specific assurances regarding the future of these vital posts.
"There must be time to ensure that any disposal does not work against the maintenance of jobs in Glasgow and Scotland. Sale to new entrants would help to consolidate jobs and be good for competition - and there must also be time for other positive options to be developed, such as management buy-out.
"Maximising jobs and headquarters functions in Scotland is vital, as we build recovery and economic success with a safer, stronger banking system."