Richard Burgon – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Richard Burgon on 2016-02-19.

To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the potential effectiveness of the ring-fence between retail and investment banking in reducing funding risk in the UK financial system; and if he will make a statement.

Harriett Baldwin

Ring-fencing insulates ring-fenced banks from shocks originating elsewhere in the global financial system, and makes ring-fenced banks simpler so that monitoring and supervision is easier. The PRA are putting in place rules to ensure that the ring-fenced bank can effectively manage its liquidity.