Policy paper

Safeguarding Stability, Enabling Growth: The Ring-Fencing Review

Publishing the government’s conclusions of the Ring‑Fencing Review and proposals to reform the regime.

• From: HM Treasury
• Published: 18 May 2026

Documents

Safeguarding Stability and Enabling Growth.

PDF, 251 KB, 21 pages

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Details

The ring-fencing regime requires the largest UK banking groups to separate retail banking from investment banking to protect depositors and support financial stability. At Mansion House 2025, the Chancellor confirmed the government’s commitment to uphold the regime and take forward meaningful reforms to support the growth agenda. HM Treasury has since undertaken a Review of the regime in close collaboration with the Bank of England.

This Review finds that, while ring-fencing continues to support financial stability, there are opportunities to make it more flexible, proportionate and responsive to developments in markets and the wider regulatory framework.

The government will bring forward relevant changes to primary legislation through the upcoming Financial Services and Markets Bill to create a more agile and proportionate ring-fencing framework. The government will also publish a consultation on the operation of the New Growth Allowance and other reforms to allow ring-fenced banks to provide more products and services to businesses. These changes will be delivered via secondary legislation once the Financial Services Bill has been enacted and as soon as Parliamentary time allows

Published 18 May 2026