Independent Scotland risks being destabilised by banks

Industry magazine The Banker, which compiled the data, said an independent Scotland would be “in danger of being destabilised” by its own banking sector.

“Had it been independent during the financial crisis, there is little doubt that an independent Scotland would have been devastated and forced to turn to the IMF for help,” said Brian Caplen, editor of The Banker.

Alex Salmond, Scotland’s First Minister, has proposed that the Bank of England would remain the lender of last resort even for banks based in an independent Scotland.

However, this depends on whether it would remain part of the sterling monetary framework, a matter that, in the event of a “yes” vote in Sept’s referendum, would be decided afterwards.

Both RBS and Lloyds Banking Group, which owns HBOS, have declined to say what their plans would be.

Last week, Sir Philip Hampton, RBS’s chairman, stressed that the proposed 18 months before secession would give the taxpayer-owned bank time to make a decision on its future.

The Banker’s annual study of the world’s top 1,000 banks found that British lenders have continued to fall behind the rest of the world in terms of size and profits.

UK banks accounted for just 2.37pc of the profits of the biggest institutions last year, compared with 11pc before the financial crisis.

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