Friday, 22 August 2014

Independent Scotland Could Fall Into 'Parlous' Financial State, Warns HSBC Boss, Huffuington Post Uk

HSBC DOUGLAS FLINT

Scottish independence could lead to "capital flight" as savers rush to move their money out of the country, the chairman of HSBC has warned.

Douglas Flint, head of Europe's biggest bank, said that such a move, brought about by uncertainty over an independent Scotland's currency, would leave the country in a "parlous financial state".

The HSBC chief's remarks come just weeks after another bank, UBS, warned that Scottish independence could trigger a rapid withdrawal of savings.

UBS economists said in a research note: “It probably does not matter that the Bank of England will act as lender of last resort during the transition period - history has shown that small depositors will queue to withdraw their money from a bank even when those deposits are fully guaranteed.”




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