First Look at Review of the Ring-Fencing Regime

HM Treasury's ring-fencing review maintains the current regime while proposing a 10% Growth Allowance for non-ring-fenced activities and increased flexibility for operational resource sharing.

Key Takeaways

• 1.A New Growth Allowance is being established for activities outside the ring-fence, allowing up to 10% of Pillar 1 risk-weighted assets for credit risk.
• 2.The core deposit threshold of £35bn for ring-fencing will now be reviewed every three years starting in Q2 2028.
• 3.Regulatory bodies will consult on increasing flexibility for sharing operational resources and reviewing interactions with Basel 3.1 capital requirements.

Table of Contents

• First Look at Review of the Ring-Fencing Regime
• Disclosure Appendix
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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