English banks will relocate in event of Scottish independence

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The financial implications of a yes vote for Scottish independence were explored further as The Royal Bank of Scotland and Lloyds Banking Group reveal plans to move to London if the voting polls support a separation from the UK.
The financial implications of a yes vote for Scottish independence were explored further as The Royal Bank of Scotland and Lloyds Banking Group reveal plans to move to London if the voting polls support a separation from the UK.

The plans in place by the two banks (who currently give work to thousands of residents in Scotland) to set up legal entities in London came after Scottish homebuyers were facing warnings it could be more difficult to get a mortgage in the event of independence.

Banks are also thought to be devising other contingency plans. One source said they may transport more bank notes to Scotland to ensure they have appropriate liquidity in case customers withdraw more cash in the event of a yes vote. And the question still remains what currency Scotland will use if they leave England.

It was confirmed that whatever currency arrangement is chosen, Scotland will require much higher capitals than it could inherit as a share of UK assets; leaving a very big deficit. And in the event of a breakaway from England, meeting this deficit would mean financial repercussions for Scotland, such as higher taxes and spending cuts.