March 11, 2014 / 12:30 PM / 3 years ago

RBS might have to leave an independent Scotland-BoE's Carney

2 Min Read

LONDON, March 11 (Reuters) - The Royal Bank of Scotland might have to move its headquarters to England if Scotland votes for independence this year and joins the European Union, Bank of England Governor Mark Carney said on Tuesday.

"It's a distinct possibility but I shouldn't prejudge it. It depends on their arrangements as well," Carney told members of Britain's parliament, adding that RBS could choose to focus more of its business on Scotland.

Carney said an independent Scotland would need to guarantee deposits held in England by Scottish-domiciled banks under EU law.

Insurance and pensions firm Standard Life said last month that it could move some of its operations out of Scotland if voters back a plan to split the country from the United Kingdom in a referendum in September.

Scotland is home to the second-largest financial services industry in the United Kingdom, accounting for about 150,000 jobs.

Carney has been at pains not to involve himself in the political debate about Scottish independence and has said he wants to provide analysis about how any monetary and banking union between Scotland and the rest of Britain might work.

Carney also told lawmakers that the BoE would provide "clear and public advice" if Scottish independence resulted in a monetary arrangement with the rest of Britain that creates risks.

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