Scotland's disillusioned corporate bankers leaving the industry

Scotland's corporate banking sector is facing an exodus of talent, as a lack of new job opportunities and difficult working conditions are forcing more people out of the industry.

RBS has lost it's 'poster boy' client, with printers John Watson of Glasgow ended its nearly 190-year relationship with the bank. Owner of the company, John Watson, cited the RBS's unwillingness to support the firm's modest expansion plans - 3m funding for a new printing press - while also paying out big bonuses for its investment banking staff.

Obviously, this is reflective of the increasing frustrations of corporate clients north of the border, which are suffering as a result of banks' ongoing reluctance to lend. However, it also explains why - nearly two years on from widespread redundancies - corporate bankers will still find it difficult to find new employment.

"This year just about every facet of the Scottish financial services industry has seen a marked improvement in job opportunities, but corporate banking is still incredibly quiet," says one banking recruiter in Edinburgh. "Most people who were made redundant will still find it incredibly hard to get back in the market."

One senior corporate banker in Scotland, who is still in gainful employment, argues that the majority of people seeking work "probably weren't very good anyway, and were being paid way too much previously considering their abilities."

But, he says, the general feeling among corporate bankers in Scotland is one of being "fed up".

"Some relatively senior ranking colleagues in the big Scottish banks have just resigned, and turned their back on corporate banking entirely," he says. "Why would you want to work in a sector where you're getting battered internally, reviled externally and hit by the regulatory authorities? There's a lot of disillusionment currently."

Allied Irish Bank is withdrawing from Scotland, while the likes RBS is not recruiting corporate bankers, suggest sources.

However, Barclays is still hiring, as are National Australia Group and Santander. What's more, while this is slightly specialist, Lloyds Banking Group has recruited a team specifically to focus on agricultural clients.