This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-scotland-scotland-politics-26531390

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Scottish independence: RBS move to England 'a distinct possibility' says Carney Scottish independence: RBS move to England 'a distinct possibility' says Carney
(about 3 hours later)
The governor of the Bank of England said there was "a distinct possibility" RBS would have to relocate if Scotland votes for independence.The governor of the Bank of England said there was "a distinct possibility" RBS would have to relocate if Scotland votes for independence.
Mark Carney's comment was made with reference to EU rules requiring banks to have head offices in the state where the majority of their customers live.Mark Carney's comment was made with reference to EU rules requiring banks to have head offices in the state where the majority of their customers live.
He said the rules would apply to RBS if an independent Scotland joined the EU.He said the rules would apply to RBS if an independent Scotland joined the EU.
During evidence to MPs, Mr Carney added he "shouldn't prejudge" post-independence arrangements.During evidence to MPs, Mr Carney added he "shouldn't prejudge" post-independence arrangements.
Taking questions from Westminster's Treasury committee, Mr Carney was asked by Conservative MPs David Ruffley and Andrea Leadsom if RBS and Lloyds would have to relocate their head offices if Scotland voted "Yes" and the country joined the EU.Taking questions from Westminster's Treasury committee, Mr Carney was asked by Conservative MPs David Ruffley and Andrea Leadsom if RBS and Lloyds would have to relocate their head offices if Scotland voted "Yes" and the country joined the EU.
Responding to Ms Leadsom, he said: "It's a distinct possibility but I shouldn't prejudge it." Responding to Ms Leadsom, he said: "It's a distinct possibility but I shouldn't prejudge it.
Mr Carney cautioned that the status of the banks might depend on any future arrangements between an independent Scotland and the rest of the UK. "It depends on their arrangements as well, if they were to adjust more into Scotland the minor management of the institution."
The BBC's Robert Peston has reported that the relevant European directive, Council Directive 95/26/EC of 29 June 1995, had never been tested in the courts.The BBC's Robert Peston has reported that the relevant European directive, Council Directive 95/26/EC of 29 June 1995, had never been tested in the courts.
Mr Carney also told MPs that any "informal adoption of sterling" by an independent Scotland without a currency union would mean it losing the lender of last resort facilities of the Bank of England. 'Lender of last resort'
Mr Carney also told MPs that any "informal adoption of sterling" by an independent Scotland without a currency union would mean the country losing the lender of last resort facilities of the Bank of England.
Mr Ruffley asked if the Bank would support RBS and Lloyds if an independent Scotland adopted the pound with no currency union.
Mr Carney told the committee that the Bank "can act as lender of last resort to branches and subsidiaries of foreign banks" but it did not have to.
The governor described a currency union as a "political question which the major political parties have ruled out" but added that the Bank of England had "done work on these issues" and "was well appraised of the potential risks."The governor described a currency union as a "political question which the major political parties have ruled out" but added that the Bank of England had "done work on these issues" and "was well appraised of the potential risks."
He said his own speech on the subject in Edinburgh in January, when he talked of countries which are involved in a currency union having to cede some sovereignty, was a "technocratic assessment".He said his own speech on the subject in Edinburgh in January, when he talked of countries which are involved in a currency union having to cede some sovereignty, was a "technocratic assessment".
Mr Carney added: "At no time have I said that I do not support or that I advocate a currency union."Mr Carney added: "At no time have I said that I do not support or that I advocate a currency union."
Ms Leadsom asked whether Scotland would have to adopt its own currency before joining the euro, as an alternative to continuing to use the pound.
Mr Carney said it was a matter of "European law" and whether the remainder of the UK without Scotland was regarded as a continuing state in the EU, but said he took the views of European Commission President Jose Manuel Barroso as a "starting point".
He continued: "Scotland would have to apply to join the European Union [and] that application, as for any new application to join the European Union, would include a commitment to join the euro in the fullness of time."
Mr Barroso has said that it would be "extremely difficult" for an independent Scotland to join the EU, a claim the Scottish government has described as "pretty preposterous".
'Unproven currency'
Voters in Scotland will decide whether it should be an independent country in a referendum on 18 September.Voters in Scotland will decide whether it should be an independent country in a referendum on 18 September.
A spokesman for the pro-Union Better Together campaign said: "What people in Scotland need is clarity from Alex Salmond about his Plan B for what would replace the pound.
"Would we have to sign up to the euro, as Mark Carney said, or would we set up an unproven separate currency?
"No doubt Alex Salmond's response will be the same as every other time an expert has questioned his plans - Mark Carney is wrong and only the first minister is right. It simply isn't credible."
'Clear advantages'
SNP Treasury spokesman Stewart Hosie, a member of the committee, said: "I am pleased the governor took this opportunity to confirm the Bank of England's neutrality on the issue of Scottish independence, and that his Edinburgh speech was a technical assessment of currency unions, not a judgment on independence.
"Mark Carney was clear that the issue he wanted to get across was the nature of the stability arrangements which are required for the formation of a successful currency union.
"I am pleased that the Scottish government's Fiscal Commission Working Group have described in detail a blueprint for such a successful currency union."
The group, chaired by economist Crawford Beveridge, recently reiterated its view that a formal currency union was the best option for an independent Scotland, saying it had "clear advantages for the rest of the UK".