UK to set out looser bank ring-fencing rules next week, Sky News says
Government Plans to Relax Bank Regulations
(This May 16 story has been repeated with no changes to the text)
Background and Context
LONDON, May 16 (Reuters) - Britain's government will set out more detailed proposals next week to relax bank regulations that had been designed to stop a repeat of the 2008 financial crisis, Sky News reported on Saturday.
Legislative Agenda and Ring-Fencing
Last week Prime Minister Keir Starmer's government set out its legislative agenda for the new parliamentary session which included proposals to loosen the "ring-fencing" designed to stop problems in banks' investment-banking arms spilling over into their high-street banking activities.
Expected Announcements and Details
More detailed proposals could be announced as soon as Monday, Sky News said, citing a government source.
Key Proposals and Implications
Finance Minister's Role and Lending Changes
Finance minister Rachel Reeves had signed off on proposals that "mean that Britain's biggest banks can lend at reduced funding costs to organisations aligned with added government’s economic policy objectives", the broadcaster said.
Operational Adjustments for Banks
Banks would also be allowed to share more services between ring-fenced and non-ring-fenced parts, reducing their costs, it said.
(Reporting by David Milliken, Editing by Louise Heavens)
