ROYAL Bank of Scotland has appointed a veteran of its corporate banking business to be the new head of the taxpayer-owned group’s operations in Scotland.

Edinburgh-based RBS said Malcolm Buchanan, managing director of corporate and commercial banking in Scotland, has succeeded Ken Barclay as chairman of its board in the country.

Mr Buchanan said he was honoured to be appointed to a position in which he will play a key role in Royal Bank’s efforts to overcome the legacy of the problems the group has suffered since requiring a £45 billion bail out from taxpayers in 2008.

As chairman of the Scotland board Mr Buchanan will head a body that is meant to ensure all the different parts of the RBS business in Scotland are working together effectively.

Royal Bank said Mr Buchanan will drive the board’s strategy to build a successful and sustainable RBS in Scotland and to help the bank become number one for customer service and trust in the country.

“I want to play my part in making RBS the bank of choice for people in Scotland by rebuilding trust with our customers and by focussing resolutely on becoming number one for customer service in the country,” said Mr Buchanan.

Last month Ross McEwan, the chief executive of RBS, said there is still a lot of work to do to return the group to health as it counts the financial and reputational cost of issues such as payment protection insurance mis-selling.

As one of the dominant players in Scotland, Royal Bank faces competition from rivals lenders such as HSBC that see opportunities to increase their market share.

Mr Buchanan has been appointed three months after Mr Barclay surprised the market by announcing he intended to leave Royal Bank of Scotland after almost 40 years with the group. One of the best known business bankers in Scotland, Mr Barclay spent the last three years as chairman of the RBS Scotland board.

It is thought Mr Barclay wanted to consider other possibilities following a long career at RBS. This included spells running Royal Bank’s corporate banking business in Asia Pacific and creating and leading the Technology, Media and Telecoms banking business in the UK and continental Europe.

Mr Buchanan has gained over 20 years of business banking involving big corporates and smaller firms, working in Scotland, Manchester and London.

A Chartered Banker by training, Mr Buchanan joined RBS in 2000 after the group bought NatWest, where he had been working for two years. He previously spent 13 years at Clydesdale Bank.