On 14 October 2024, the Economic Secretary to the Treasury, Tulip Siddiq MP made a statement regarding reforms to bank ring-fencing.
The statement provides that the government will implement a package of reforms as soon as parliamentary time allows and such reforms will include:
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The introduction of a secondary threshold to exempt retail-focussed banking groups from the regime - where investment banking activity accounts for less than 10% of Tier 1 capital.
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New flexibilities to allow ring-fenced banks to operate globally, subject to PRA rules.
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Measures to encourage more investment by ring-fenced banks in UK SMEs.
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Measures to reduce the compliance burdens associated with the regime.
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An increase in the primary deposit threshold for ring-fenced banks, from £25bn to £35bn.