The banks have made contingency plans for the eventuality of a successful independence referendum next week, on Thursday the 18th of September. They will use the transitional period after the vote to re-establish themselves as British companies.
Lloyds Banking Group put out the following statement: "While the scale of potential change is currently unclear, we have contingency plans in place which include the establishment of new principal legal entities in England. This is a legal procedure and there would be no immediate changes or issues which could affect our business or our customers. There will be a period between the Referendum and the implementation of separation, should a ‘yes’ vote be successful, that we believe should be sufficient to take any necessary action."
Citing, 'speculation', the RBS statement reads: "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. [...] Scotland has been RBS's home since 1727. RBS intends to retain a significant level of its operations and employment in Scotland to support its customers there and the activities of the whole Bank."
RBS insists customers wouldn't be affected in the slightest by the move.
Both banking corporations in question and HBOS were at the receiving end of a £37 billion Government bailout in October 2008 which saved them from default but put them under the control of public officials.
Leave a comment