Chancellor Alistair Darling has urged RBS customers and staff to have confidence in the future of the troubled Edinburgh-based bank.
Speaking to STV News Mr Darling said a new team is already in place to ensure it has a strong footing in the economy both in Scotland and the rest of the UK.
He said: "I am confident we can turnaround RBS, there is a new management team, they are making a big difference already.
"We are beginning to see that and think it's important. RBS is a big employer in Edinburgh and Scotland and the whole country, and of course the financial services sector is very important to us too. So very important we stick to it, we turn things round and I am very confident that will happen."
The Government pumped £20billion of public money into the struggling bank after RBS made a UK record annual pre-tax loss of £24.1billion in 2008, widely blamed on the disastrous strategy of corporate acquisition pursued by former chief executive Sir Fred Goodwin.
The MP said the institute was "very important to Scotland" and to the many people it employed.
He said: "It employs thousands of people, a lot of people in Edinburgh. I think it is important the financial services sector remains strong and vibrant, not just in Scotland but in the whole country.
Mr Darling also acknowledged that the banking sector had lost a lot of confidence in recent times.
He said: "It is understandable if you work for a bank, particularly RBS, where things have been very difficult. But confidence comes in the fact that essentially we have a good bank.
"This is a bank that is one of the biggest in the world. and I want to ensure we can get the pride back into RBS.
"These are good quality jobs, there is a lot of skills, it is an essential part of the fabric of our economy and our country. We've got to work very hard to make sure that happens. and i am confident it will happen."
He also urged First Minister Alex Salmond to face up to the reality of the economy situation the UK and rest of the world is facing, and accused him of spending too much on his own "pet projects".
Mr Darling said: "We've fixed spending until next year and they know the position. There is not a family in this land, not a business that doesn't have to pull in its belt.http://admin.stv.tv/editNewsArticle.cfm?post_id=150804
"And I've never understood why Alex Salmond can't face up to the realities that everyone else is. You have to live within your budget.
"It is up to the Scottish Government where it spends its money. What it has to recognise, like everyone else, is that it has to be more efficient and that means spending a little bit less spending on referendums and promoting Alex Salmond's pet projects."
See the full interview with STV political correspondent Jamie Livingstone here.
