With banks struggling throughout the UK, concerns have been raised for the future of Edinburgh’s greatest financial assets, the Royal Bank of Scotland and the Halifax Bank of Scotland.

The UK government has become RBS’s largest shareholder, threatening its position as one of Scotland’s oldest and most profitable independent banks.

With banks struggling throughout the UK, concerns have been raised for the future of Edinburgh’s greatest financial assets, the Royal Bank of Scotland and the Halifax Bank of Scotland.

The UK government has become RBS’s largest shareholder, threatening its position as one of Scotland’s oldest and most profitable independent banks.

Roger Lawson, Director of the UK Shareholders Association, has warned that with RBS now under government control it will “not remain a Scottish bank based in Scotland.”

Meanwhile a heated debate continues over the proposed deal between Lloyds TSB and the Bank of Scotland.

A growing number of senior figures in business have signed a petition that will be sent to both the Scottish and UK government, demanding a reappraisal of the proposed takeover.

Scottish tycoon Sir Tom Framer is one of many business leaders who have voiced their concern that the takeover could damage the future of Scotland’s economy.

If the deal is passed however, it is expected that the Bank of Scotland will move its headquarters out of Edinburgh.

RBS and HBOS are the city’s biggest employers, after the University of Edinburgh and the Scottish Government.

Residents fear that the banking crisis could have adverse consequences for the entire city.

Graham Birse, the deputy chief executive at the Edinburgh Chamber of Commerce has warned that Edinburgh must, ‘reassert itself in world markets’ and maintain strong and independent banks.

He says, “the best solution for our banks and for the rest of us is not to panic…its what we built up over 100 years and it won’t disappear in one crisis.”

In Perth, at the SNP party conference, Alex Salmond attacked Gordon Brown for Scotland’s economic woes, saying that the Prime Minister had brought Scotland to the ‘brink of a recession’.

For now Edinburgh residents and business leaders must wait and see what the crisis means for Scotland’s capital of finance