Scotland’s possible independence from the UK is more likely to harm the country’s finance sector than the UK’s withdrawal from the European Union (EU), according to a new research.
According to the study released by the Strathclyde University on Monday, Scotland’s banks and financial institutions are expected to survive the Brexit shock with no major implications.
However, the outlook of an independence from the UK looks grimier than even a “sharp” Brexit, the research warns.
Under the “hard Brexit” formula, the UK may lose its preferential access to the EU’s single market and suffer from soured relations with other EU members.
“The uncertainties for the sector following independence look even greater than those following a sharp Brexit,” read the report, which was conducted by former Royal Bank of Scotland economist Jeremy Peat and Owen Kelly, head of Scottish Financial Enterprise.
“There are risks associated with Brexit but,…