It is possible to effectively ringfence retail and
investment activities without restructuring banks into
essentially two separate entities, the UK market has said.
But the cost and energy of creating a ringfence
could force some universal banks to opt for complete
Speaking last week before the UK Parliamentary
Commission on Banking Standards (Commission), Professor
John Kay said it was incredibly difficult to write rules that
make a ringfence sufficiently robust. The market, however,
It is entirely feasible for a valid and
workable ringfencing system to occur within the existing
banking and financial sector, said Dominic Griffiths,
head of Mayer Brown's banking & finance group in
In his submissions before the Commission, Kay said:
The reason I wrote the Narrow Banking...