Changes to relax UK banks' ring-fencing regime put out to consultation
( July 15, 2026, 10:11 GMT | Official Statement) -- MLex Summary: Proposals to give UK banks greater regulatory flexibility have been published in a consultation on reforms for the ring-fencing regime that are aimed at supporting economic growth while maintaining most post-financial crisis safeguards. The by the finance ministry's proposals would introduce a new "Growth Allowance" that would permit banks to undertake previously restricted activities up to 10 percent of their credit risk-weighted assets and broaden the range of derivatives that banks can offer by aligning the framework with Basel 3.1 requirements. The reforms would also expand the types of counterparties that banks can deal with. The consultation closes on Sep. 8.Statement follows. The consultation document is attached....
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