'Small country' set to leave eurozone, says RBS chair

22 December 2011

The global banking system could experience extreme strain in the near future as a member state of the eurozone looks set to leave the economic region.

That is according to Philip Hamilton, chairman of Royal Bank of Scotland (RBS), who believes a nation may opt to begin the break-up of the area by departing due to the ongoing fiscal crisis there.

Speaking during a seasonal financial discussion to be broadcast on Sky News today (22 December), Mr Hamilton explained it is "likely that one country, a small country, will drop out of the eurozone" - a scenario that would ramp up the pressure on banks across the world.

"It could be any of them because I think that some of these things will be driven by political events as much as by economic circumstances and social unrest," he noted.

This comes after Ben Broadbent of the Bank of England stated that the government's attempts to breathe life into the UK economy are being undermined by the eurozone situation.

By Asim Shah

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