Scottish Independence: RBS and Lloyds Shares Jump on Relocation Pledge

Shares in Lloyds Banking Group and the Royal Bank of Scotland are leading the FTSE 100 in the opening session after the two government backed banks revealed that they will relocate business in the event of Scottish independence.

RBS shares jumped by 2.22% at 349.80p while the Lloyds stock price rose by over 1% to 74.02p after both lenders pledged to significantly restructure where they house their business if Scots decide to end the 307-year old union.

Lloyds, which is 25% government owned and owns Bank of Scotland, said it had already devised a contingency plan if the country became independent, which includes setting up "new principle legal entities in England".

RBS also confirmed in a lengthy statement that it has also devised a contingency plan.

"There are a number of material uncertainties arising from the Scottish referendum vote which could have a bearing on the bank's credit ratings, and the fiscal, monetary, legal and regulatory landscape to which it is subject," said the bank.

"For this reason, RBS has undertaken contingency planning for the possible business implications of a 'Yes' vote. RBS believes that this is the responsible and prudent thing to do and something that its customers, staff and shareholders would expect it to do."

Scottish people will vote in an independence referendum on 18 September, 2014, and will be asked the straight "yes/no" question: "Should Scotland be an independent country?"

Scotland's financial services industry generates around £7bn (€8.8bn, $11bn) to £9bn for the economy and employs around 100,000 people.

The Scottish banking industry accounts for 13% of all banking employment in the UK.

Lloyds employs 16,000 staff in Scotland while RBS employs 11,500. Bank of Scotland has 293 bank branches while RBS has 270.