UK Government to Outline Relaxed Bank Ring-Fencing Rules for Major Lenders
Government Plans to Ease Banking Regulations
Background: Post-2008 Financial Crisis Safeguards
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 Proposals
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 Ministerial Approval
More detailed proposals could be announced as soon as Monday, Sky News said, citing a government source.
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 Changes for Major Lenders
Banks would also be allowed to share more services between ring-fenced and non-ring-fenced parts, reducing their costs, it said.
Reporting and Editorial Credits
(Reporting by David Milliken, Editing by Louise Heavens)
