What a UK bank ring fence looks like (maybe) | FT Alphaville

What a UK bank ring fence looks like (maybe)

Click the pic to peruse the UK government’s white paper on bank reform, published on Thursday in response to Vickers

The consultation is open until September. On a quick read-through we’d highlight some of the proposed exemptions from ring-fencing retail ops — also this move on leverage ratios:

The Government does not therefore see a case for regulators permanently to increase the minimum leverage ratio beyond the Basel III international standard for large ring-fenced banks, as proposed by the ICB.

Interestingly… HMT has also asked whether “banks’ own pension funds, or charities and/or local authorities” should become preferred over other senior unsecured creditors in a bail-in, alongside government-guaranteed depositors.

Lots of assurances here that the government will work with Europe to ensure this squares with legislation in Brussels…