Government confirms bank ring-fencing plans

The government has confirmed its plans to force banks to ring-fence their retail operations, as well as other measures recommended by the Independent Commission on Banking (ICB).

Financial secretary Mark Hoban announced the proposals to the House of Commons this afternoon, as the Treasury published a white paper on the issue. The new rules will require banks to split investment banking and related activities from more traditional personal and business lending, with the later having oversight from an independent board. However, they will still be able to offer simple hedging products, subject to the necessary safeguards. As recommended by the ICB, high net worth individuals will be exempt from having to place their deposits in ring-fenced banks. Meanwhile...