Salmond comes out in favour of a new Scots bank

Published on Thursday 5 November 2009 20:56

FIRST Minister Alex Salmond has given his backing for a Scots-owned bank for the first time since The Scotsman revealed that a consortium of businessmen hoped to buy TSB from Lloyds.

During First Minister's Questions yesterday Mr Salmond said Scotland would gain if a new Scots-owned bank emerged from the current upheaval in the financial sector.

Responding to Lib Dem leader Tavish Scott, Mr Salmond said: "I think if there is the opportunity to either re-establish a new bank with a Scottish headquarters, or indeed a Scottish-owned bank, that would be good for customers, good for competition and a good thing for Scotland."

Previously, the Scottish Government had refused to comment on stories of TSB being set up as a standalone bank or lend support for the move by Scottish businessmen, possibly including the chairman of the Noble Group Ben Thomson.

Earlier, Mr Salmond came under fire in FMQs for failing to do enough to support the banking sector despite promising to "strain every sinew" to do so.

Labour leader Iain Gray interrogated Mr Salmond on his involvement with the Financial Services Advisory Board (Fisab), set up to help the banking sector.

Even though Mr Salmond is supposed to chair Fisab, Mr Gray revealed he had not attended a meeting since February, having failed to show up to the last one in June and twice postponed the subsequent meeting.

Mr Gray alleged that the First Minister had preferred to stay at home in the North-East in June and attend parties at Edinburgh and Stirling castles on 29 September and 27 October when the most recent meetings had been scheduled before being postponed to 9 December.

Mr Gray said:

"He is straining Scotland's patience but he is not straining his sinews. He is posted missing again and again."