SNP Growth Commission: Banks would move HQs to London if Scotland independent

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A number of Scottish banks would move their headquarters to London as a result of an independent Scotland’s financial arrangements, the SNP’s Growth Commission Report admitted.

Banks with Scottish headquarters, which were regulated by a new Scottish Central Bank and the new Scottish Financial Authority (SFA) , would “ring-fence” their retail and commercial operations in a similar way to which they are done in the UK.

Royal Bank of Scotland

Royal Bank of Scotland

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A resolution regime would be established mirroring the UK approach for orderly winding down of failed banks.

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Financial support from the SCB would not extend to the holding companies of retail banks to cover activities outside Scotland. Nor beyond what is needed to ensure that retail depositors in Scottish banks are protected.

The document went on to echo one of the key points made by opponents of independence during the 2014 referendum, who said splitting the UK would see banks move their headquarters out of Scotland.

“It is anticipated that a number of banks may re-domicile their registered headquarters to London,” the document said.

“A substantial part of the executive functions of these banks is already in London and so there would be a very limited impact on operational activity.”