Published by Global Banking & Finance Review®
Posted on April 15, 2026
3 min readLast updated: April 15, 2026
Add as preferred source on GoogleIncoming PRA chief Katharine Braddick (starting July 1) says she will not advocate further reforms to the bank ring‑fencing regime, aligning with the government’s efficiency focus while a formal review is under way.
April 15 (Reuters) - The incoming head of the Bank of England's prudential arm said on Wednesday she would not push for further changes to Britain’s bank ring‑fencing rules.
Katharine Braddick, formerly a Barclays bank executive, will on July 1 take up the role of chief executive of the Prudential Regulation Authority, which is responsible for the safety and soundness of 1,300 banks and insurers.
The finance ministry last year launched a review of the ring-fencing regime, which was introduced as part of wider post-financial crisis reforms and requires lenders to separate retail banking from riskier trading activities. It is due to set out its findings later in the year.
At a pre‑appointment hearing before parliament's Treasury Committee, Braddick said she had no plans to press for additional reforms beyond the government's review.
"I've observed that the government has established it continues to want a ring fence, and that it wants that ring fence to be optimised for efficiency," she told lawmakers.
"That seems to me to be what the PRA is doing, so I don’t have anything to add to that. It seems to me that the matter is settled."
INDUSTRY BACKGROUND
UK banks HSBC, Lloyds, NatWest and Santander have previously urged the finance ministry to scrap the regime, saying it hampers growth and has been made redundant by additional reforms to boost bank safety. Barclays is alone among major banks to favour maintaining the status quo.
UK regulators have been under pressure from the government to cut red tape on businesses in an effort to revive sluggish economic growth.
Since Braddick’s appointment was announced, questions have been raised about whether her industry background would make her more inclined toward deregulation than current prudential head Sam Woods, though she gave little away when questioned by lawmakers.
“In terms of my understanding of where the PRA is looking through its current policy process, I think it’s looking in the obvious and right places,” she added, pointing to ongoing work on the bank leverage ratio and efforts to ease data-reporting requirements, among other initiatives.
She also hinted, however, at a possible change in approach to bank supervision, citing lessons that could be learned from a recently announced European Union review of its supervisory approach.
(Reporting by Phoebe Seers; Editing by Andy Bruce and Alison Williams)
Katharine Braddick, formerly a Barclays executive, will become the chief executive of the PRA on July 1.
Katharine Braddick stated she does not plan to push for additional ring-fencing reforms beyond the government’s review.
The regime requires banks to separate retail banking from riskier trading activities to enhance financial stability.
Major banks like HSBC, Lloyds, NatWest, and Santander argue the rules hamper growth and may be redundant due to newer safety reforms.
Some have questioned if her previous banking experience would make her more inclined toward deregulation, but she gave little indication of such at her hearing.
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