A leading environmental organisation has warned there would be no large Scottish-owned and registered banks in the event of separation.

Friends of the Earth Scotland told members in a briefing that the situation in relation to banking “will become more complicated” and major names may move their headquarters out of Scotland.

The discussion paper ‘Smaller, Green Banking’ – which was launched last night – stated: “Should Scotland vote Yes the situation will become more complicated.

“Post-independence it is likely that there would be no large Scottish-owned and registered banks.”

And it later added: “Should Scotland not be able to negotiate a currency union and have to choose a different course it is likely that the two largest banks – RBS and Lloyds – would move their headquarters and registered office from Scotland to the UK.”

The paper was produced by Friends of the Earth Scotland with the help of financial author Ray Perman.

The organisation joins a range of other experts who have warned of the dire consequences for the financial services industry should Scotland break away from the rest of the UK.

Scottish Conservative energy spokesman Murdo Fraser MSP said:

“This is a fairly stark warning from an organisation not known for its dislike of independence.

“If Lloyds and RBS shifted operations from here south of the border it would mean potentially thousands of jobs going with them.

"It’s hard to see how these could be easily replaced.

“The idea that such famous Scottish brands would have to leave in the event of independence significantly undermines the whole concept.

“But I expect the SNP to ignore these warnings – it wants separation at any cost, and if that means thousands of people losing their job and the loss of world-renowned Scottish brands, Alex Salmond will see that as a price worth paying."

The warning is on p7 of the document, which can be found here:

http://www.foe-scotland.org.uk/smaller-greener-banking-report