Mrs Robinson whose appointment follows that of previous chairman Colin Davenport who stood down at the end of 2006 will play a key part in the bank's future growth strategy in the city.
Throughout a career spanning over 25 years with Manchester City Council
Mrs Robinson held a number of high profile positions including 12 years as deputy leader and served as lord mayor in 1986/87.
Lesley Cozens, managing partner of Yorkshire Bank's FSC comments: "Kathleen is one of the most recognisable and respected figures in the Manchester community. Her experience and insight will prove invaluable both to our own growth plans and those of our clients".
Yorkshire Bank's approach of appointing chairmen to its FSC network is unique in the banking sector. As well as providing invaluable local business knowledge and networking contacts many act as business mentors to senior FSC staff.
Commenting on her appointment Kathleen Robinson says: "I am delighted to be part of this exciting concept in business banking. Yorkshire Bank wants to connect people, give its customers access to the best advice and work with them to grow their businesses. I look forward to helping Lesley and her team provide real value to our customers throughout the Greater Manchester area".