Separating from the European Union could trigger a 20 percent drop in sterling and shave 1.5 percentage points off the British economy, HSBC has warned.
The doom-laden report released Wednesday outlined the worst-case scenario if voters were to approve a "Brexit" — that is, a British exit from the EU — in the June 23 referendum.
It's the bank's latest piece of analysis to be released since U.K Prime Minister David Cameron promised to hold a general vote on the country's membership of the EU on June 23.
"It will be a momentous decision," HSBC's note explained. "A vote for Brexit would have potentially huge consequences for all asset classes...Uncertainty could grip the UK economy, triggering a potential slowdown in growth and a collapse in sterling," it added.