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UK moves to ease banks’ ring-fencing rules in growth drive

By Sofia Gerace ( May 18, 2026, 14:37 GMT | Insight) -- The UK government is moving ahead with reforms to ease the ring-fencing regime for banks, after the largest ones raised concerns that the rules were holding back growth. The finance ministry will introduce a new “Growth Allowance” to let large banks use part of their balance sheets more flexibly, and said the reforms could unlock £80 billion of additional financing for UK businesses.The UK government is moving ahead with reforms to ease the ring-fencing regime for banks, after the largest ones raised concerns that the rules were holding back growth....

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