By Daniel Hunter
The Royal Bank of Scotland (RBS) has delivered a dire warning about the potential impact of Scottish Independence on the business.
RBS said that if Scotland votes in favour of independence from the UK, it could significantly increase its costs and have a material impact on the bank.
Earlier this year, RBS even admitted that it was looking at its options if Scotland votes ‘Yes’.
Whilst doing its best to stay out of the political debate, RBS, which is still 81% owned by the British taxpayer, said that a vote for independence “could significantly impact the group’s costs and would have a material adverse effect on the group’s business, financial condition, results of operations and prospects”.
One of the key issues with the debate on Scottish Independence is the uncertainty of it all. Various organisations including the UK government have released research and data suggesting the Scottish economy would be far worse off than if it stayed with the UK. But on the other side of the debate, the Scottish government and supporters of the ‘Yes’ campaign have also released data suggesting the Scottish economy will be better off.
And it’s that uncertainty which RBS says will impact on its credit rating. The bank said the uncertainty “could also impact the fiscal, monetary, legal and regulatory landscape to which the group is subject”.
RBS has been keen to stress that the debate on Scottish Independence is one for the Scottish people to decide. But it’s message is clear; if Scotland votes ‘Yes’ on September 18, it will hold dire consequences for the Royal Bank of Scotland.
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