Arc of Prosperity

Scottish Independence within the EU – with a Scandinavian Slant


Banks in an independent Scotland

Wallace Monument
Originally uploaded by john1710

Lots of unionists seem to see in the problems of Bank of Scotland (HBOS) and Royal Bank of Scotland (RBS) the ultimate proof that Scotland is too small to be independent.

Not all unionists are convinced, however.

Apart from Fraser’s points, it’s worth remembering that independence would have consequences in many unexpected ways, and the size of banks is likely to be one of them.

If Scotland had been independent for the past hundred years, it’s unlikely that BoS and RBS would have grown so big. Other small countries don’t tend to have any banks that large. (Apart from Iceland, that is.)

It might also be that independent Scottish competition authorities would feel obliged to split up the banks as they’re too dominant here.

But even if Scotland was home to the headquarters of massive financial institutions, they probably would have separate structures in Scotland and England, and Scotland would only have to save the Scottish bit.

One thought on “Banks in an independent Scotland

  • Have any countries felt the need to save icelandic institutions with branches in the UK? I don’t know the answer, but I thought we just took the deposits and put them in a safer bank and let the banks country of origin handle the debts.


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