There have been two opposite points of view in response to this question debated in the media. One report, by the Ernst & Young ITEM Club, says it will fare better and another report, by the Fraser of Allander Institute, says otherwise.

Whether this is true or not depends upon how you view the financial services market in Scotland. In Scotland, the financial services sector accounts for more than 86,000 employees that work in this area. Only London and West Yorkshire, predominantly in the Leeds area, have a higher percentage of staff in the financial services sector.

The worst part of the financial services sector affected by the credit crunch is the high-end areas, such as hedge funds and derivatives trading, which is not concentrated in Scotland, according to Dougie Adams or the Ernest & Young ITEM Club. However, many do work for banks such as HSBC, Lloyds TSB and Royal Bank of Scotland, working in call centre servicing mortgages and personal accounts.

If the HSBC and Lloyds TSB merge, then there could be redundancies, although when Natwest and Royal Bank of Scotland merged, the redundancies did not follow for two years.

However, house prices in Scotland have not risen as much as in other areas south of the border, hence credit problems caused by rising house prices probably will not hit Scotland as much as other areas and thus call centre workers in mortgages and mortgage advisors may not feel the effects as much.

The debate on how Scotland will be affected rages on.

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