by Sachin Ravikumar and Iain Withers
LONDON (Reuters) – Britain will soon move to ease bank ring-fencing rules introduced after the 2007-09 financial crisis to improve the sector’s competitiveness, City Minister Tulip Siddiq said on Monday , responsible for overseeing the financial services sector.
The move comes as the UK hosted an investment summit on Monday aimed at boosting the country’s appeal to global investors.
The ring-fencing rules – which separate consumer lending activities from the more volatile investment banking activities – were introduced after British taxpayers had to bail out several struggling lenders during the financial crisis.
Banks have long argued that the rules are too onerous and hamper Britain’s competitiveness compared to other global financial centers.
The threshold for retail deposits required for the rules to come into force will be increased to 35 billion pounds ($46 billion), compared to the current 25 billion, the City Minister notably indicated.
The reforms, which are also expected to include more flexibility for some retail banks and to allow ring-fenced banks to operate globally, will be implemented as soon as parliamentary time allows, Tulip Siddiq said.
($1 = 0.7666 pounds)
(Reporting by Sachin Ravikumar and Iain Withers; Editing: Catarina Demony; Editing: Paul Sandle, Louise Heavens and Bernadette Baum Bertrand de Meyer, editing by Sophie Louet)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
