Bank of Scotland, a division of HBoS, has promoted Michael Barfuss and Dietrich Stoltenburg to run its its structured finance team as weakness in the German banking sector has presented non-German players with an opportunity to win business in the region.

HBoS said the new appointments were aimed at building on Bank of Scotland's existing presence in the German buy-out market, where debt funding has been largely dominated by domestic banks such as HypoVereinsbank. Buy-out firms, particularly those focusing on the mid-market, have complained that German banks, hit by the economic downturn and tightening regulations, are increasingly unwilling to finance transactions.