Lender, now part owned by the Government, says marine finance unit "no longer financially viable"

Bank of Scotland, part of the Lloyds Banking Group, has pulled out of marine finance.

The decision to close Bank of Scotland Marine Finance was made after a review last year found that the department was “no longer financially viable or core to the future business strategy”.

Lloyds, 43.4% owned by the Government following a bailout last year, has also closed Bank of Scotland’s motor finance division.

Despite the closure of the marine finance department, a Bank of Scotland spokesman told MBM that it would honour all existing marine finance customer contracts.