The SNP has sought assurances over jobs in Glasgow's finance industry as plans emerged to force RBS  to sell off its insurance divisions.

Plans to sell off RBS' insurance division could put around 1600 Glasgow based jobs at risk.

Commenting on ongoing discussions regarding the future of the banking system, Finance Secretary John Swinney said that the Scottish Government's focus is on maximising jobs and headquarters functions in Scotland. Mr Swinney said:

"The Scottish Government have been in contact with both Lloyds Banking Group and the Royal Bank of Scotland, as well as the Treasury and UKRep, in the interests of securing employment and competition within Scotland's financial sector and the wider economy.

"The Lloyds situation presents opportunities for Scotland, and as and when any such reported divestments are announced, the Scottish Government will be active in seeking a buyer for Lloyds TSB Scotland which increases competition in the markets and helps secure Scotland's broader economic interests. These possible developments regarding Lloyds also provide potential for the issue of the Lloyds TSB Foundation to be addressed, and we believe it is important that this opportunity is taken advantage of.

"In terms of the Royal Bank of Scotland, we are concerned about the implications of any forced sale of the insurance division, which employs substantial numbers in Scotland, particularly Glasgow. They must not be disposed of in a way that would be damaging to jobs, and therefore the Scottish Government will be seeking specific assurances regarding the future of these vital posts.

"There must be time to ensure that any disposal does not work against the maintenance of jobs in Glasgow and Scotland. Sale to new entrants would help to consolidate jobs and be good for competition – and there must also be time for other positive options to be developed, such as management buy-out.

"Maximising jobs and headquarters functions in Scotland is vital, as we build recovery and economic success with a safer, stronger banking system."

SNP Candidate in Glasgow North East David Kerr warned of the threat to the city's jobs

"Unemployment in Glasgow North East is currently higher than it was under the Tories. At the moment it sounds like the Chancellor is more interested in a good price than good jobs.

"There have already been job losses as a result of the banking collapse - many of them in Scotland. We cannot allow jobs in this city to be sacrificed by this proposal."