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UK to set out looser bank ring-fencing rules next week, Sky News says
The plan would let major lenders share IT and compliance teams, and officials say it could release billions of pounds in extra lending capacity.
- On Saturday, Sky News reported that Chancellor Rachel Reeves plans to relax ring-fencing regulations for major banks through the upcoming Enhancing Financial Services Bill.
- Prime Minister Keir Starmer's government proposed loosening ring-fencing, which was 'designed to stop problems in banks' following the 2008 financial crisis that required retail and investment banking separation.
- Banks with over 35 billion in core deposits—including Lloyds, NatWest, HSBC, Barclays, and Santander UK—may share IT systems, compliance teams, and back-office services to reduce operational costs.
- Reeves approved measures allowing major banks to issue loans at reduced funding costs for organizations aligned with 'added government's economic policy objectives.'
- Detailed proposals regarding the regulatory shifts are expected to become public as early as Monday, according to government sources cited by Sky News.
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16 Articles
Britain Unveils New Banking Reforms: A Shift in Financial Regulation
The UK government plans to relax banking regulations, initially established to prevent a recurrence of the 2008 financial crisis. New proposals, expected soon, include allowing banks to reduce costs and lend with lower funding expenses, aligning with government economic objectives.
·India
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Coverage Details
Total News Sources16
Leaning Left1Leaning Right1Center6Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
13%
C 75%
12%
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