caltonjock

Lender of Last resort

Bankers know perfectly well how the system works. When Sir Philip Hampton, chairman of RBS gave evidence to the House of Lords in November 2012, he was quite clear:

“We have used many central banks as a lender of last resort for the many operations that we have in the many jurisdictions in which we operate. That is a key part of what central banks do in the jurisdictions that they control. Just because there might be an independent Scottish Government does not mean that all our lender of last resort facilities would disappear; they would be continued.”