Structural Reform: Ring-Fencing the UK Financial Markets System
29 January 2019
The financial crisis exposed substantial vulnerabilities within the global financial system. This report focuses on the UK banking system and the subsequent efforts enacted by regulators to modify and “future-proof” the banking structure in the event of similar upheavals.
Key research questions
- What are the recently introduced regulations in the UK financial services industry?
- What are the implications for the banking system as a result of ring-fencing?
- What IT challenges do FIs face in light of the ring-fencing legislation?
Abstract
“Ring-fencing” or “structural reform” refers to the legislation requiring the separation of banks’ retail banking activities from their wholesale and investment banking activities. In separating the two units, banks must have their own operational IT and data management systems.