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Western EuropeMay 5 2023

Big Bang 2.0: should ring-fencing of banks be phased out?

John Thanassoulis examines the pros and cons of ring-fencing banks and suggests a new method to more effectively protect people’s savings.
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Big Bang 2.0: should ring-fencing of banks be phased out?Image: Getty Images

It is now almost 15 years since a number of major UK financial institutions failed, which put millions of retail bank accounts at risk. This was part of a global financial crisis that sparked a wave of reforms around the world. 

The UK’s answer was to set up a ring-fencing regime that separated retail deposit-taking from other activities and treated them as being too vital to fail. This regime came into force in January 2019. 

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