Ring-fencing - why is it happening and the rules?
Ring-fencing is a key component of the UK Government’s legislative agenda to improve financial stability.
Ring-fencing requires that the larger UK banks separate their everyday banking services from investment banking.
Who is impacted and when is it happening?
Any UK bank with at least £25bn of core deposits in the European Economic Area (EEA) is required to comply with the legislation by 1 January 2019. Banks that are in scope are therefore likely to restructure during 2017 and 2018.
We have outlined here in broad terms, what must be inside, outside and what can be either in or outside the ring-fence. This is determined by a combination of the type of customer, the products they hold, and the geography from which they are served.
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