What do treasurers need to know about bank ring-fencing?

To prevent a repeat of the 2008 financial crisis, UK regulators have set out to drastically reform the banking system – by separating the retail and riskier investment arms of UK banks into separate legal entities. Known as ring-fencing, the objective of these new rules is to achieve greater resilience and financial stability for the banking system. Ring-fencing applies to any UK bank with over £25bn of retail deposits, including all major high street banks, and they must be ring-fenced by 1st January 2019. The changes will impact corporates as well as personal customers. Most recently, Barclays announced that it