Scotland's banks are facing an exodus of top talent and precious clients because they refuse to lend, which is impacting jobs, eFinancial reported.

For example, printers John Watson of Glasgow ended a nearly 190-year relationship with RBS because the bank refused to support the firm's humble expansion plans, less than $5 million in funding for a new printing press, yet paid out massive bonuses.

Allied Irish Bank is also leaving Scotland, and insiders says RBS has stopped recruiting.

From eFinancial:

[The] general feeling among corporate bankers in Scotland is one of being "fed up".

"Some relatively senior ranking colleagues in the big Scottish banks have just resigned, and turned their back on corporate banking entirely," he says. "Why would you want to work in a sector where you're getting battered internally, reviled externally and hit by the regulatory authorities? There's a lot of disillusionment currently."

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