The number of Scottish businesses becoming insolvent or entering receivership fell from 903 for the whole of 2015-16 to 840 in 2016-17, a decline of 7%.

Compared with the third quarter of 2016-17, total corporate insolvencies dropped by 26% to 155. This is also 33% down on the fourth quarter of 2015-16, when 230 companies failed.

The latest total was made up of 92 compulsory liquidations and 63 creditor voluntary liquidations. For the second quarter in succession, there were no receiverships recorded for the quarter.

AiB says the provisional number of personal insolvencies in Scotland increased by 1,484 or 18% to 9,958 in 2016-17 when compared with 2015-16, but were at the second lowest level since 2005-06.

During the fourth quarter of 2016, there were 2,513 personal insolvencies, up from 2,263 personal insolvencies in the same of quarter of 2015-16. However, compared with the third quarter of 2016-17, total personal insolvencies, which include bankruptcies and protected trust deeds, fell by 3.9%.

Personal insolvencies in Scotland have more than halved since 2008-09, and the numbers fell significantly in early 2015-16, the first months after the new legislation came into force introducing the Scottish Government-backed debt arrangement scheme (DAS) allowing debtors to pay their debts in full without facing insolvency.

Paul Wheelhouse, Scottish minister for business, innovation and energy, said: ‘There is no question Scotland’s businesses continue to face a challenging and uncertain future and it is a great testament to how robust and resolute they are that numbers of companies being forced to shut their doors continues to drop.

‘The fall in numbers this quarter, and indeed throughout the year as a whole, is welcome. However, we must remain vigilant in this respect and we will do everything in our power to ensure this trend continues, companies can flourish and we protect employment.’

The AiB quarterly report is here.