Ring-fencing was a key component of the UK’s response to the financial crisis of 2008–2009. As has been widely acknowledged, subsequent regulatory reforms in banking regulation (in particular, those relating to capital, liquidity, Total Loss-Absorbing Capacity (TLAC) and resolution) have largely accomplished the objectives that the introduction of ring-fencing intended to achieve. Further, the regime presents costs to the UK economy, diverts investment away from the real economy and impairs the competitive position of UK banks in international markets. This position is clearly at odds with the present UK Government’s objectives on growth, as acknowledged by the Chancellor, Rachel Reeves, in her Mansion House speech on July 15, 2025.
Please see full publication below for more information.
