Banks poised to unite

The Clydesdale is Scotland's third largest bank

The Clydesdale and Yorkshire banks are set to merge, with the main management team based in Glasgow.

The move has been announced by the banks' parent company, the National Australia Group.

Both will retain their existing identities. No jobs will be lost or branches closed, according to the group.

National Australia acquired Clydesdale, the third largest bank in Scotland, in 1987, and took over the Leeds-based Yorkshire Bank in 1990.

The merger, which requires parliamentary approval, will bring the two operations under the same banking licence and create a single banking structure.

The group already operates a single management structure for the two banks from headquarters in Glasgow and offices in Leeds.

Stuart Grimshaw, chief executive officer of Clydesdale and Yorkshire Banks, said: "A single banking structure will simplify the bank's internal systems and enable us to introduce new products and services more efficiently.

"As far as customers are concerned it will mean no change to their day-to-day dealings with the bank."