With independence Scotland will need to set-up a banking system, but it should be done in a way that minimises risk to both the Scottish people and the Scottish economy. Independence is an opportunity to redesign the banking system to protect Scottish citizens from the economic fallout of a banking crisis. A Scottish central bank will need to be set up early in the independence transition process to oversee the creation of a new Scottish currency and to be the competent authority providing regulatory oversight of the banking system.
Several concurrent activities would then follow to deliver the new banking system:
- Issuing Scottish banking licences and creating a commercial banking system;
- Setting up a Scottish Payments System.
- Creating a Scottish Universal Bank Account for all people in Scotland to provide the resilience that is missing in the UK banking system
Scottish Independence Convention (SIC) Transition Paper No.4 Banking
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