SUPERMARKET giant Tesco has announced a plan to create more than 200 finance jobs.

The expansion of its UK banking operation, in Edinburgh, will see the Scottish capital become the headquarters for the firm’s finance arm.

Industry leaders said it showed the city remained a key financial centre, despite the problems faced by Edinburgh-based banks RBS and HBOS.

Tesco Personal Finance chief executive Benny Higgins said the recruitment was an “important step” in its expansion.

“Edinburgh is the ideal place from which to move what is already a successful business into the next stage of its development,” he said.

“We have continued to attract some of the best talent from across the industry, both from within Scotland and from those looking to move here for the right opportunity.

“There is a real enthusiasm among our staff for being based in Edinburgh.”

Tesco’s finance arm has signed a 15-year lease on a new headquarters in the Haymarket area of Edinburgh.

Around 250 members of staff will move from South Gyle, on the outskirts of the city.

Tesco is planning to eventually extend its financial services from a collection of financial products to that of a full banking service.