Posts tagged 'Ring Fence'

That ring fence will be electrified after all

So, it’s happening. The Banking Reform bill to be published today will give the Treasury and the bank regulator the power to break up a bank that doesn’t respect the ringfence between retail banking and the riskier stuff. Read more


Britain’s biggest banks are set to escape any major restructuring until after the planned 2015 general election, amid a political consensus that they should focus on business lending to sustain the faltering economy …

That’s the latest news on the upcoming report from the Independent Commission on Banking (ICB), due to shape the future of Britain’s banks, and as published by the FT late on Wednesday. Read more

Whoops! Ring-fencing retail banks could backfire

Regulatory snafu anyone?

The UK’s Independent Banking Commission (IBC) recommended in April that banks start ‘ring-fencing’ their retail operations so that large banks are able to fail without endangering depositors. That is, so-called ‘universal banks’ that provide both investment banking and retail operations will have to have retail subsidiaries, with separate and sufficient ‘ring-fenced’ capital to cover their own liabilities. Read more

How to ring-fence a TBTF

How – and how much does it cost – to ring-fence the retail banking operations of systematically important, or Too-Big-to-Fail UK banks?

Well, here’s what it might look like. Read more