Long-standing Lloyds TSB Scotland head of treasury Douglas Reid was yesterday eased out of his post to make way for a previously London-based banker whom the bank hopes will ramp up the range of products sold north of the border.

The bank insisted last night that the changes represented an enhancement of its treasury operations in Scotland.

Gary McGregor, executive assistant to Lloyds TSB Scotland chief executive Susan Rice, said the company was expanding the range of products it offered to clients north of the border, particularly in the areas of foreign exchange and complex financial instruments called derivatives.

As a result Reid, who has been offered another as-yet unconfirmed post within the company, has made way for John Wood, who specialised in this area at Lloyds TSB's headquarters in the City. where he worked at director level.