RBS to redomicile upon Scottish independence 'yes' vote

Scotland's two biggest banks have said they would relocate to England if Scotland votes for independence next week, adding to the economic uncertainties the country faces if it decides to end its 307 year union with the rest of the UK.

The diminished presence of Royal Bank of Scotland (RBS) and Bank of Scotland-owner Lloyds Banking Group , along with other leading financial groups which have also said they might relocate some operations on a "yes" vote, could be a significant loss given the sector's importance in the Scottish economy.

RBS, based in Scotland since 1727 and which employees 11,500 staff there, said on Thursday it had taken the decision because a vote for independence would create uncertainties which could impact its ability to borrow.

"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 said in a statement.

The bank, 81pc-owned by the British government, said the decision was part of contingency planning ahead of the vote which was responsible and prudent and was what its customers, staff and shareholders would expect it to do.

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