UK: structural reform of the banking sector and the electrification of the ring-fence

Last year the Government published its proposals for the ring-fencing of banks' deposit-taking activities: see here. These were subject to review by the Parliamentary Commission on Banking Standards which, in a report published shortly before Christmas, recommended that the legislation should seek to deter banks from testing the limits of the ring-fence by providing for full separation of activities in certain circumstances, so-called 'electrification' of the ring-fence: see here. Today, the Chancellor of Exchequer announced in a speech his acceptance of the Commission's electrification recommendation: see here. A document outlining the Government's response to the Commission's recommendations was also published and this states that the amended Financial Services (Banking Reform) Bill will be introduced in Parliament today: see here (pdf).