Independent Scotland faces exodus of banks

In a statement on its website, RBS said it would re-domicile to England, predicting ‘a number of material uncertainties arising form the Scottish referendum.’ It states:

“[…] there are a number of material uncertainties arising from the Scottish referendum vote which could have a bearing on the Bank’s credit ratings, and the fiscal, monetary, legal and regulatory landscape to which it is subject.

“As part of such contingency planning, RBS believes that it would be necessary to re-domicile the Bank’s holding company and its primary rated operating entity (The Royal Bank of Scotland plc) to England.”

It has said this will have no affect on ‘customers, staff and shareholders.’

In another statement, it said independence would: “significantly impact the group’s costs and would have a material adverse effect on the group’s business, financial condition, results of operations and prospects””

In similar statements, Llyods and TSB, which became distinct entities earlier this year, said they would establish new ‘legal entities’ in England in the event of a ‘yes’ vote; Clydesdale Bank said it would re-register there.

RBS is 80 per cent owned by the UK government.

RBS, Lloyds and several other financial institutions have said they will move their base in the last two days.

The legal and administrative costs of moving accounts to England have been estimated to be as high as £1bn.

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