THE boss of banking giant Lloyds has suggested the institution could pull its headquarters out of Scotland following independence.

Antonio Horta-Osorio said the bank had not "concluded" its analysis on the issue.

Such a move would be seen as a massive blow to Scotland's banking industry. Lloyds is currently headquartered, or legally registered, in Edinburgh and employs around 17,000 people in Scotland.

Asked if the bank would remain headquartered in Scotland following a Yes vote in next year's referendum, Mr Horta-Osorio said that no decision had yet been taken. "That is a question we are monitoring quite carefully," he said. "Scotland is very important for us. We are monitoring what the Scottish people will want to do, and we will make a plan accordingly. We haven't yet concluded our analysis."

But he rejected claims that Lloyds could see its cost of borrowing rise if creditors believed that an independent Scotland had fewer resources to bail out banks than the rest of the UK.

"It depends on how you organise geographically, how you have your legal vehicles," he said. "There are several solutions for that."

Last year, the chairman of the Royal Bank of Scotland, Sir Philip Hampton, suggested the lender could consider moving from its Edinburgh headquarters if independence created "extra difficulties".