MSPs warned of Europe-US rift

Angela Knight, chief executive of the British Bankers' Association (BBA), warned a cross-party group of MSPs last night of potential differences between European and American responses to the banking crisis.

At a reception held in the Scottish Parliament she warned that the UK banking industry faced challenges from European and international regulations while the US may not instigate similar measures. She said UK legislators needed to ensure a level playing field to encourage the retention of banking headquarters in the UK.

The reception was attended by special guest Sir Philip Hampton, chairman of Royal Bank of Scotland.

The event was the third held by the BBA at Holyrood and was an opportunity for Knight to brief MSPs on developments in the sector, including the launch of a growth fund for small firms.