Financial sector 'still has huge strengths'

Published on Thursday 9 April 2009 01:33

THE financial services industry in Scotland still has "huge strengths", Alex Salmond said yesterday.

But the First Minister admitted the sector north of the Border has been "badly shaken" by the high profile problems of some banks – including Royal Bank of Scotland plans to shed 9,000 jobs.

Mr Salmond was in Shanghai on the latest leg of his official visit to China, where he met the city's financial services director-general, Dr Fang Xinghai.

"Financial services are badly shaken, and as this week's RBS announcement demonstrates, jobs are continuing to be lost," Mr Salmond said. "But I believe that Scotland has what it takes to rebuild growth and prosperity.

"Scotland continues to have huge long-term strengths in financial services, and we are an international centre for excellence in life assurance, pensions, and asset management – where new jobs are being created."

Talks were held at yesterday's meeting on the opportunities for co-operation in asset management. Scottish firms including Standard Life Investment, Aberdeen Asset Management and Martin Currie have all found "natural homes" in China, according to Mr Salmond.

He added: "This strength and depth in asset management is helping to underpin Scottish firms amid very difficult conditions for the world economy and financial markets.

"New conditions and new opportunities will arise from the current financial crisis, and increased co-operation between Scotland and China is already reaping dividends."

The Chinese government announced last month that it would speed up the process of turning Shanghai into a major financial sector by 2020.

"We look forward to continuing to form closer co-operation with financial sectors experts like the Scottish financial services industry to speed up the pace of developing Shanghai," Dr Fang said.