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Meanwhile, Gary Douglas, corporate banking relationship director at RBS says: "Undoubtedly economic conditions are tighter this year but amidst some of the more gloomier headlines, deals and transactions continue to be completed locally."

DLA Piper partner Tim Littler leads the banking team, which has been involved in transactions ranging in value from 1 million to 75 million.

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Meanwhile, independent accountant Hart Shaw says traditional businesses are driving the local economy and Roal Bank of Scotland adds that transactions are continuing to be completed locally despite some of the gloomier national predictions.

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Manufacturing helps stability

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Sheffield's manufacturing base is providing the bedrock for the city's economic stability during the current credit crunch, according to local financial and legal experts.

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"I think this reflects the fact that there is still a healthy manufacturing base in Sheffield. A lot of companies locally went to the wall in the 1980s and early 1990s and the ones that are left are lean, efficient and well run with strong order books from exploiting international markets. The marketplace may be challenging but these companies still need to borrow money for general expansion or require funding for trading opportunities or making acquisitions."

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Chris Sellars, corporate finance partner at leading Sheffield independent accountant, Hart Shaw, added: "Some of the traditional businesses in Sheffield, aligned to the aerospace, oil and chemical industries, are driving the local economy. These companies are performing very well and have long order books on the back of considered and significant investment in technology and in a highly skilled workforce."

DLA Piper's banking team says corporate activity has been strong during the first half of the year and much of it has been generated locally.

Mr Littler said: "While the national media is currently full of economic doom and gloom stories, particularly relating to the lack of availability of finance and its effect on the property and housebuilding sectors, we have had a very busy period, mainly with local corporate deals reflecting a healthy level of activity in the regional market.

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