The spectre of a Scottish talent exodus is raised

In an increasingly rare pessimistic prediction, the latest CBI/PWC survey says that Scotland faces an exodus of senior banking talent if decision-making within the country's two major institutions moves south of the border.

Although there's been an increase in optimism about the likelihood of a recovery in the financial sector generally, sentiment around future employment levels has slumped in the last quarter across the UK.

The CBI/PWC report suggests that the possible threat from the European Commission to cut the market-share of RBS and the newly-enlarged Lloyds Banking Group means there's also continued uncertainty over financial services jobs in Scotland.

"There remains a concern around the banks as they continue to review their operations

and balance sheets," said Lindsay Gardiner, head of financial services at PWC in Scotland.

There's also the question of whether the balance of power within these organisations could shift towards London.

"One key concern for the Scottish financial services will be any continued leakage of decision-making from Edinburgh as this increases the risk of losing senior roles and talent to other financial services centres," says Gardiner.

This echoes the concern raised by the BBC's political editor Robert Peston last week, when he said that there was a chance Scottish investment jobs at RBS could move to London.

However, things are looking up elsewhere in the Scottish financial industry, with Gardiner suggesting that the asset management and asset servicing sectors were showing signs of recovery.

A separate study by the Scottish Alliance of Sector Skills Council says that the financial services industry in Scotland is showing "tentative" signs of improvement.