Tuesday 22 October 2019

Banks at risk if Scotland becomes independent

DOMESTIC banks in an independent Scotland would be too big to be rescued in a crisis, it was revealed yesterday.

A study by the UK Treasury into the economic implications of separation claimed that the country's banking system would collapse under pressure.

Scottish banks would have assets worth 254pc of gross domestic product – that is higher than Cyprus and Iceland before their financial crises.

Taxpayers would also have £65,000 (€77,000) of potential liabilities in a bailout which is more than double the current level in the UK.

A Treasury spokesman said: "Bank failures would pose a very serious risk to taxpayers."

Irish Independent

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