Bank Ring-Fencing Schemes – Do You Know Who Your Tenant Is?
Submitted by KeithDaniel on
What is ring-fencing?
By 1 January 2019, all UK banks with more than £25 billion in retail deposits were required to have separated their retail banking services from their investment banking, also known as ‘ring-fencing’. Ring-fencing aims to increase stability in UK banks and support consumer banking by protecting it from unrelated risks in the wider financial system. The reform, originally proposed by the Independent Commission on Banking following the 2008 financial crisis, was introduced by the Financial Services (Banking Reform) Act 2013.