{"value":{"id":1733709,"memberId":4559,"member":null,"memberRole":"The Financial Secretary to the Treasury","uin":"HLWS123","dateMade":"2024-10-14T00:00:00","answeringBodyId":14,"answeringBodyName":"Treasury","title":"Reforms to bank ring-fencing","text":"<p>My honourable friend the Economic Secretary to the Treasury (Tulip Siddiq) has today made the following Written Ministerial Statement.</p><p>The statutory independent review of ring-fencing and proprietary trading led by Sir Keith Skeoch, which reported in March 2022, made recommendations to improve the operation of the ring-fencing regime.</p><p>The government will implement a package of reforms as soon as parliamentary time allows. The reforms will improve competition and competitiveness in the UK banking sector and support economic growth, while maintaining financial stability.</p><p>The reforms will include:</p><ul><li>the introduction of a secondary threshold to exempt retail-focussed banking groups from the regime – where investment banking activity accounts for less than 10% of Tier 1 capital;</li><li>new flexibilities to allow ring-fenced banks to operate globally, subject to PRA rules;</li><li>measures to encourage more investment by ring-fenced banks in UK SMEs;</li><li>measures to reduce the compliance burdens associated with the regime; and</li><li>an increase in the primary deposit threshold for ring-fenced banks, from £25bn to £35bn.</li></ul>","house":"Lords","noticeNumber":0,"hasAttachments":false,"hasLinkedStatements":true,"linkedStatements":[{"linkedStatementId":1733706,"linkType":"JointStatement","linkDate":"2024-10-14T00:00:00"}],"attachments":[]},"links":[{"rel":"self","href":"/Statements/1733709","method":"GET"}]}