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.”
Mark Carney has said that Bank of England officials have drawn up plans in response to fears of "capital flight" from Scotland.
Speaking earlier this month, the Bank governor acknowledged that "uncertainty about the currency arrangements could raise financial stability issues”.
Meanwhile Flint used a column in the Telegraph to say that a sterling currency union was an "anchor of financial stability" for Scotland.
The Scottish-born HSBC boss said that first minister Alex Salmond's plan for an independent Scotland to keep using the pound, even though the main three parties have ruled it out, in an informal currency union, was "a very odd form of independence".
He wrote: "The alternatives to a currency union include a completely independent currency, passive acceptance of a monetary policy designed in London for the rest of the UK, or, assuming Scotland rejoins the European Union, eventual membership of the euro.
"In all these circumstances, the transition from the existing currency union would be complex and fraught with danger. At the extreme, uncertainty over the Scotland's currency arrangements could prompt capital flight from the country, leaving its financial system in a parlous state.
"This could, in turn, place enormous pressure on Scotland's future fiscal policies. Scotland would give up the benefits of being part of a larger fiscal union with the stability that offers in terms of scale, diversification and fiscal transfers."
Flint praised the main three parties' "wholly consistent" decision to rule out the Scottish government's preferred option of a formal currency union between an independent Scotland and the rest of the UK.
"It is also consistent with the knowledge gained from recent events in the eurozone, which have highlighted the challenges inherent in managing a currency union without political and fiscal union," he said.
The HSBC boss' warning about Scottish independence comes after the owner of Clydesdale and Yorkshire Banks said that it could bring "significant additional costs".
National Australia Bank (NAB) said it had made contingency plans should the referendum next month turn out in favour of a split from the UK.
Scottish Independence: Who Stands Where
No: Barack Obama(01 of12)
Open Image ModalThe American electorate may have gone off their president after five and a half years in office but Barack Obama still enjoys 2008 levels of popularity in the UK. People from the No Campaign probably fainted when Obama said "the key word is 'united'" when asked about Scotland. (credit:ASSOCIATED PRESS)
Yes: Sir Sean Connery(02 of12)
Open Image ModalAustin Powers may be against independence but James Bond isn't. Sir Sean has told his fellow Scots that independence "is too good an opportunity to miss". He also said the potential boosts to the film and creative industries are "particularly exciting". (credit:Danny Lawson/PA Archive)
No: Hillary Clinton (03 of12)
Open Image Modal"I would hate to have you lose Scotland," the potential next American president told Jeremy Paxman on Newsnight. "I hope that it doesn't happen but I don't have a vote in Scotland. But I would hope it doesn't happen." She added: "I would think it would be a loss for both sides but, again, I don't have a vote." (credit:ASSOCIATED PRESS)
Yes: Brian Cox (Not That One)(04 of12)
Open Image ModalThe face of BBC science has not declared for or against Scottish independence but his namesake, actor Brian Cox is firmly in favour of it.He has provided the voice of Duggy Dog, an animated Highland Terrier created by the Yes campaign who aims to "sniff out fact from fiction" in the independence debate. (credit:ASSOCIATED PRESS)
No: David Bowie(05 of12)
Open Image ModalSince dabbling in right-wing politics in the 1970s, Bowie's views appear to have mulled somewhat.When Kate Moss collected his BRIT award earlier this year, she read a statement on behalf that asked Scotland to "stay with us".The statement said: "In Japanese myth the rabbits from my old costume that Kate's wearing live on the moon. Kate comes from Venus and I from Mars, so that's nice. I'm completely delighted to have a Brit for being the best male, but I am, aren't I Kate? I think it's a great way to end the day. Thank you very, very much and Scotland - stay with us." (credit:Martin Rickett/PA Wire)
Yes: Alan Cumming(06 of12)
Open Image ModalThis Scot is firmly pro-independence. So much so, the New York-based actor bought a flat in Edinburgh last year so he would be able to vote in September's referendum. Unfortunately, it was deemed not to be his "main address" and, by extension, he will not be able to vote. (credit:Andy Kropa /Invision/AP)
No: JK Rowling(07 of12)
Open Image ModalJK Rowling, who wrote her first Harry Potter book while living in Edinburgh and still lives in the Scottish capital, has given £1 million to defeat Alex Salmond.She wrote she was "no fan of the Westminster government".She added: "The simple truth is that Scotland is subject to the same 21st century pressures as the rest of the world. The more I listen to the Yes campaign, the more I worry about its minimisation and even denial of risks."A Twitter account digested this and reflected: "What a #bitch after we gave her shelter in our city when she was a single mum." (credit:Ian West/PA Wire)
Yes: Billy Bragg(08 of12)
Open Image ModalAlways outspoken, Bragg's take on Scottish independence is that it would be as good for his native England as it would for north of the border. The left-winger said: "Scottish independence throws up the possibility of a more progressive England. We won’t be British any more, we’ll be English." (credit:Jonathan Short/Invision/AP)
No: The BBC, According To Protestors(09 of12)
Open Image ModalNo...ish: Pope Francis(10 of12)
Open Image ModalPope Francis voiced concerns about Scottish independence - but his comments were non-commital to the point where both the yes and no camps welcomed them.Speaking about secession movements across the world, the infallable representative of God on earth said countries breaking away from larger states should be considered on a "case-by-case basis".He acknowledged the case was "clear" in in some cases but listed Scotland as one of the cases where "I ask myself it is so clear".He said: "Let's think of the former Yugoslavia. Obviously, there are nations with cultures so different that couldn't even be stuck together with glue."The Yugoslavian case is very clear, but I ask myself if it is so clear in other cases - Scotland, Padania, Catalunya."No campaigners said the Pope was "right to warn about the impact of division" while No campaigners said: "As His Holiness says, these matters should be looked at on a case-by-case basis." (credit:ASSOCIATED PRESS)
Yes: Glasgow's Sunday Herald(11 of12)
Open Image ModalThe Sunday Herald became the first Scottish paper to back the yes campaign in May with this front cover. It wrote: "We understand the past, as best we can, and guess at the future. But history is as nothing to the lives of the children being born now, this morning, in the cities, towns and villages of this country."On their behalf, we assert a claim to a better, more decent, more just future in which a country's governments will be ruled always by the decisions of its citizens.'' (credit:Sunday Herald)
Yes. No. Wait, What?: Elijah Wood(12 of12)
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