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Royal Bank of Scotland's ambition to become a top-tier force in corporate banking and markets is pushing up salaries for investment bankers.

Traditionally the giant US banks are the best payers in the sector, but RBS is joining the high pay club.

"RBS is buying its way into the market,” says one headhunter. “And when you do that you have to pay a premium to get people."

Last week, the Scots bank hired three senior financial institutions group (FIG) debt bankers from Lehman.

RBS’ inflationary effect is said to be particularly noticeable in the US, where it has a declared ambition to become a top-tier force in US corporate and investment banking and plans to hire up to 300 staff this year. RBS Greenwich Capital recently announced the recruitment of three senior credit traders from UBS.

Commenting on its US ambitions earlier this month, Johnny Cameron, chief executive of the RBS Global Banking and Markets division, said: "We are an established top 10 player. The next stage is to consolidate a top five position."

Cameron said the division plans to recruit 1,250 staff worldwide this year. It has hired 2,250 people in the past two years as part of the expansion.

But the flip side is that the bank has revealed a diminishing appetite for earnings volatility from prop trading – it closed its London FX prop trading desk late last year.

In Europe, RBS dominates the leveraged finance market and is climbing league tables in all areas of the debt market.

More than 40% of RBS Global Banking and Markets revenues are now derived abroad and the bank believes it can continue to deliver double-digit growth in the division.