Britain Set to Revamp Bank Ring-Fencing Rules Amid Global Investment Push

Britain plans to ease bank ring-fencing rules from the financial crisis to boost competitiveness, as announced by city minister Tulip Siddiq. The reforms aim to support economic growth, maintaining financial stability, by changing the thresholds of retail deposits and offering flexibility to banks.

Britain is poised to relax its ring-fencing rules for banks, a measure initially put in place following the 2007-09 financial crisis. City minister Tulip Siddiq announced the move on Monday during an investment summit aimed at enhancing the UK's attractiveness to global investors.

The ring-fencing regulations, separating consumer lending from riskier investment banking operations, emerged after substantial taxpayer-funded bailouts during the crisis. Banks have criticized these rules for stifling competitiveness with other international financial centers.

Siddiq outlined a package of reforms poised to bolster economic expansion while safeguarding financial stability, including raising the retail deposits threshold from £25 billion to £35 billion. Additional measures involve flexibility for ring-fenced banks to engage globally and initiatives to spur small business investment.

(With inputs from agencies.)