Royal Bank of Scotland should be broken up in the event of independence, with its Scottish arm put under the ­control of the Holyrood Government until it can be returned to the capital markets, according to a pro-independence group.

Bank of Scotland should also be unpicked from Lloyds Banking Group and Clydesdale Bank taken out of the National Australia Bank group to serve Scottish customers, ­Options For Scotland said.

OFS dismissed ­unionist "scaremongering" that Scotland's banking sector is too big for a small independent country.