THE Bank of England is making preparations for potential financial instability if Scots back independence, following warnings there could be a run on the banks.

Governor Mark Carney said uncertainty over an independent Scotland's currency was one of the possible risks to the economy.

A leading European bank has warned a Yes vote could see panicked savers start to move their money south of the border within hours.

Last night Alistair Darling, the leader of the pro-Union Better Together campaign, said Mr Carney's remarks increased pressure on First Minister Alex Salmond to outline his Plan B.

But Scottish Finance Secretary John Swinney said Mr Carney's comments showed the Bank of England would remain responsible for the financial stability of Scotland in the immediate aftermath of a Yes vote.

He added: "This also shows why it is in the best interests of the rest of the UK to continue with a currency union on independence." For his part Mr Carney said yesterday that that decision would be taken by politicians, not the Bank of England. He added that in the event of a Yes vote: "Uncertainty about the currency arrangements could raise financial stability issues. We will, as you'd expect, havecontingency plans for various possibilities."

He declined to be drawn on what those plans were, saying that his institution had a "wide range of tools and plans" available.