Bankers unlikely to attend MSPs inquiry

Published on Wednesday 3 June 2009 20:55

THE Scottish Parliament is to hold an inquiry into the banking industry, it has been confirmed.

But key players at the heart of the recent collapse and multibillion-pound bail-outs are unlikely to appear. Instead the inquiry, by Holyrood's economy committee, will focus on Scotland's reputation as a financial services centre and will look at the restructuring of banks and building societies in the country.

Gavin Brown, a Conservative committee member, said: "We've tried as a committee to invite key players in the past and those invitations have been declined." It would be "difficult" to force officials from the Bank of England, Financial Services Authority and Treasury to give evidence, he said.

Holyrood's power to compel witnesses to appear only applies to devolved issues.

Issues such as regulation, products in the "shadow banking market", the honesty of institutions' prospectuses, takeovers and the role of the Office of Fair Trading are outside the committee's area of responsibility.

"These are the issues that matter," said former Labour leader Wendy Ms Alexander. "But it seems to me that not one of them falls within our remit."

The committee will also look at employment in the financial sector in Scotland, and the cost and availability of credit.