Fears have been expressed over the future of the HBOS headquarters

Writing in the Scotsman newspaper, James Crosby acknowledged that customers have not always approved of changes.

He said the bank will now address these concerns.

And he has promised that the role of the HBOS headquarters in Edinburgh will be strengthened.

Proposals by HBOS to move the branch currently operating in its headquarters building in the Mound in Edinburgh had crystallised opposition to what critics believe is the downgrading of the Scottish part of the merged organisation.

They believe it confirmed that the merger was a takeover by the Halifax in all but name.

We are in the course of achieving a significant extension of the reach and presence of Bank of Scotland as a financial services business and brand in the UK James Crosby HBOS chief executive

But Mr Crosby has firmly rejected the charge that the Mound has become peripheral to the bank's operation.

He stressed that the Edinburgh building will continue to host main board and executive board meetings.

He also pointed out that five of the seven-strong executive board are based at the Mound.

However, Mr Crosby admitted that more will have to be done to address the concerns of customers and what he calls "former colleagues".

He said the bank would not hesitate to apologise to customers and colleagues who had suffered during the merger.

The Bank of Scotland brand, he promised, will in future be used more prominently.

Activists' disappointment

According to Mr Crosby: "We are in the course of achieving a significant extension of the reach and presence of Bank of Scotland as a financial services business and brand in the UK."

The name Bank of Scotland is to feature in the signage of 700 branches in England and Wales.

The "Save the Branch on The Mound" campaign group welcomed the fact that HBOS had responded publicly to its concerns.

It said it was disappointed that a banking facility is not to be retained in the Mound building but welcomed the clarification that it will continue to be used as a fully operational and functional head office.