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| Version 2 | Version 3 |
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| Scottish independence: Lloyds bank says yes vote may have 'material impact' | Scottish independence: Lloyds bank says yes vote may have 'material impact' |
| (about 1 hour later) | |
| Scottish independence could have a "material impact" on its business, Lloyds Banking Group has said. | Scottish independence could have a "material impact" on its business, Lloyds Banking Group has said. |
| In its annual report, Britain's biggest bank said it had concerns over potential compliance costs and funding. | In its annual report, Britain's biggest bank said it had concerns over potential compliance costs and funding. |
| Finance Secretary John Swinney said the comments highlighted why a formal currency union was the "right proposal". | Finance Secretary John Swinney said the comments highlighted why a formal currency union was the "right proposal". |
| A UK Treasury spokesman said the Lloyds report showed the "risks and costs" arising from independence. | A UK Treasury spokesman said the Lloyds report showed the "risks and costs" arising from independence. |
| Lloyds listed a "yes" vote in September's independence referendum as one of seven key risks in its latest annual report. | Lloyds listed a "yes" vote in September's independence referendum as one of seven key risks in its latest annual report. |
| Under the heading Risk Management, the report stated: "The impact of a yes vote in favour of Scottish independence is uncertain. | Under the heading Risk Management, the report stated: "The impact of a yes vote in favour of Scottish independence is uncertain. |
| "The outcome could have a material impact on compliance costs, the tax position and cost of funding for the group." | "The outcome could have a material impact on compliance costs, the tax position and cost of funding for the group." |
| The list also included a raft of UK government, European and international reforms and developments. | The list also included a raft of UK government, European and international reforms and developments. |
| The banking group said the picture was "uncertain" and that it would continue to monitor the potential impact of independence. | The banking group said the picture was "uncertain" and that it would continue to monitor the potential impact of independence. |
| A spokesman for Lloyds said: "Lloyds Banking Group believes that questions about Scotland's future constitutional position are a matter for the people of Scotland and the UK and Scottish Parliaments. | |
| "There are no immediate issues that will affect Lloyds Banking Group customers either in Scotland or the rest of the UK, particularly as any change in constitutional arrangements are unlikely to come into effect until 2016." | |
| Barclays report | |
| Separately, Barclays said in its own annual report, which was also published on Wednesday, that the referenda on Scottish independence in September 2014 and on UK membership of the European Union, expected before 2017, may affect the group's risk profile. | |
| This would be through "introducing potentially significant new uncertainties and instability in financial markets, both ahead of the respective dates for these referenda and, depending on the outcomes, after the event", it said. | |
| The Risk Review section of its report also highlighted concerns in the market about credit risk, including that of sovereign states, and the Eurozone crisis. | |
| The exit of one or more countries from the Eurozone was also cited as a risk, as was decline in residential prices in the UK, western Europe and South Africa. | |
| Meanwhile, the BBC's Robert Peston said he had learned that if the people of Scotland voted yes to independence on 18 September then both Royal Bank of Scotland and Lloyds "may be forced to move their registered offices or legal homes to London under European Union law". | |
| He blogged that a senior banker had told him that legal advice had been sought on the impact of the EU directive, Council Directive 95/26/EC of 29 June 1995, because it "has never been tested in the courts and there is no case law around it". | He blogged that a senior banker had told him that legal advice had been sought on the impact of the EU directive, Council Directive 95/26/EC of 29 June 1995, because it "has never been tested in the courts and there is no case law around it". |
| Reacting to the Lloyds Banking Group report, Mr Swinney commented that Scotland had a strong and diverse economy and the point of independence "was to win the powers we need to build on those strengths and create a more prosperous and secure economy". | Reacting to the Lloyds Banking Group report, Mr Swinney commented that Scotland had a strong and diverse economy and the point of independence "was to win the powers we need to build on those strengths and create a more prosperous and secure economy". |
| He believed that would be good for the financial sector and "everyone else". | He believed that would be good for the financial sector and "everyone else". |
| Mr Swinney added: "Lloyds Banking Group's comments show exactly why our proposals for a formal currency area are the right proposals, why they are in the best interests of business on both sides of the border and why that is what will be implemented by both governments." | Mr Swinney added: "Lloyds Banking Group's comments show exactly why our proposals for a formal currency area are the right proposals, why they are in the best interests of business on both sides of the border and why that is what will be implemented by both governments." |
| However a Treasury spokesman said the bank's report was in tune with last months's announcement by the Scottish financial institution, Standard Life. | |
| Standard Life said it might move some of its operations outside Scotland in the event of independence. | Standard Life said it might move some of its operations outside Scotland in the event of independence. |
| The Treasury spokesman said: "Lloyds have now joined RBS and Standard Life in reasonably and fairly pointing out the risks and costs that arise from independence. | The Treasury spokesman said: "Lloyds have now joined RBS and Standard Life in reasonably and fairly pointing out the risks and costs that arise from independence. |
| "This uncertainty is being made worse by the Scottish government's failure to set out a plan for what currency it would use in the event of independence. | "This uncertainty is being made worse by the Scottish government's failure to set out a plan for what currency it would use in the event of independence. |
| "These interventions from business show that the strength and stability of the United Kingdom is the essential underpinning of Scotland's successful financial services sector over several centuries. It's common sense to stick with something that works." | "These interventions from business show that the strength and stability of the United Kingdom is the essential underpinning of Scotland's successful financial services sector over several centuries. It's common sense to stick with something that works." |