Royal Bank of Scotland confirmed it would relocate its headquarters south of the border in the event of a Yes vote in the Scottish independence referendum next week, following a similar announcement from Lloyds Banking Group on Wednesday.
In a stock exchange statement on Thursday, the bank said that as part of its contingency planning, 'RBS believes that it would be necessary to re-domicile the Bank's holding company and its primary rated operating entity (The Royal Bank of Scotland plc) to England'.
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It said that in the event of a Yes vote, its decision to re-domicile 'should have no impact on everyday banking services used by our customers throughout the British Isles', stating this was the most effective way to 'provide clarity' to stakeholders.
RBS's annual report detailed 'material uncertainties' that could affect its credit rating in the event of a Yes vote, including 'fiscal, monetary, legal and regulatory' change.
'The vote on independence is a matter for the Scottish people,' the bank said. 'Scotland has been RBS's home since 1727. RBS intends to retain a significant level of its operations and employment in Scotland to support its customers there and the activities of the whole bank.'
Clydesdale Bank confirmed it was also seeking registration as an English company in the event of a Yes vote. The announcement from its parent National Australia Bank said that re-registration 'would address some of the uncertainties and risks surrounding terms of separation if Scotland were to become an independent country'.
Alex Salmond, Scotland's First Minister, claimed the bank's announcement would not place Scottish jobs under threat and that it had been used by the UK government as part of its political campaign.
He told BBC Radio Scotland on Thursday morning: 'This is a technical procedure regarding the location of our registered head office, based on our current strategy and business plan. It is not an intention to move operations or jobs.'
With some polls showing the two sides neck-and-neck a week before the vote, business leaders have become more outspoken about the impact of a Yes vote. Retailer Next said on Thursday it feared that independence would push up prices in its stores north of the border.
Lord Wolfson, chief executive, said he was concerned about the impact on the wider economy. 'If their currency is a weaker one, potentially it is going to put prices up [in Scotland],' he said.
Sir Charlie Mayfield, chairman of John Lewis, said that independence could force the retailer to adopt a different pricing regime in Scotland due to potential currency and tax changes.
RBS employs more than 12,000 people in Scotland. Lloyds, which employs about 16,000 people north of the border, is also considering relocating its Bank of Scotland, Halifax and Scottish Widows divisions to London. However, neither bank has said how many jobs could migrate from Scotland to London.
About 3,000 people are based in RBS's Gogarburn headquarters, a purpose-built complex on the outskirts of Edinburgh created at a cost of £335m under former chief executive Fred Goodwin shortly before the financial crisis.
Other Scotland-based banks are under pressure to clarify what they would do in the event of a vote for independence.
The recently floated TSB Bank, which has more than a quarter of its loans north of the border, said on Thursday it planned to move its main high street banking subsidiary's domicile from Edinburgh to London. TSB's parent company and head office are already all in London, but it has more than 2,000 staff in Scotland, out of a total of 8,000.
'Although the implications of Scottish Independence remain unclear, it is likely that in the event of a Yes vote, TSB will establish additional legal entities in England,' it said, adding that it expected there to be enough time between a Yes vote and the start of independence to implement any changes.
The announcements came after a co-ordinated effort by the Better Together campaign, the Treasury and Number 10 to persuade businesses to speak up in favour of the union. On Thursday morning, more than 100 Scottish business leaders jointly signed a letter organised by Better Together urging Scots to vote 'no', arguing that the economic risks of separation were not worth taking.
'Danny Alexander and George Osborne have been making calls,' said one Treasury figure on the recent spate of companies making announcements.
RBS and Lloyds are Scotland's biggest companies by assets and both have the UK government as their biggest shareholder - a legacy of the taxpayer bailouts of the two banks during the financial crisis. Their plans to relocate south of the border if the Yes vote wins are likely to be an important factor in the final days of debate.
Lloyds said on Wednesday it had 'seen an increased level of enquiries from our customers, colleagues and other stakeholders about our plans post the Scottish referendum'.
It added: 'While the scale of potential change is currently unclear, we have contingency plans in place which include the establishment of new legal entities in England. This is a legal procedure and there would be no immediate changes or issues which could affect our business or our customers.'
A Treasury spokesman said: 'Lloyds' contingency plan to relocate to London in the event of a Yes vote is understandable. As a general matter, the government believes any company should be free to choose where to locate its base, in the light of what best suits the stability and competitiveness of its business.'
Since opinion polls showed in the past week that the Yes camp had closed the gap with the No camp, people have been moving bank deposits, pensions and savings south of the border.
If Scotland leaves the UK, money deposited in Scottish bank accounts will no longer be guaranteed by the financial services compensation scheme or have the Bank of England as the lender of last resort.
Standard Life, the FTSE 100 insurer that is one of the largest employers north of the border, said on Wednesday that it was planning to shift large parts of its business out of the country if Scotland voted for independence. 'This transfer of our business could potentially include pensions, investments and other long-term savings,' it said.
Additional reporting by Andy Sharman and Elizabeth Rigby
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