The economic think-tank also fears a potential lack of competition in the business-lending market north of the border, in terms of the large market shares of Royal and Lloyds, might also hamper the economy.
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Lending brake by troubled banks ‘could stall recovery’
Scotland’s eventual economic recovery could be held back if the taxpayer-backed Royal Bank of Scotland and Lloyds Banking Group’s own financial troubles make them particularly reluctant to lend, Strathclyde University’s respected Fraser of Allander Institute has warned.
