Banks to rake in millions if ring-fencing rules ripped up

NATWEST and Lloyds are set for a major cash boost if Rachel Reeves rips up the ring-fencing regime imposed on lenders.

- By Samuel Norman

FTSE 100 banking giants have lobbied the Chancellor to axe the system, which they described as a “drag on banks”.

The bosses of HSBC, Lloyds, NatWest and Santander slammed the regime as “redundant” and obstructing the firms’ “ability to support business and the economy” in a letter to Reeves.

New figures from RBC analysts reveal the banks are set for a significant payout if the Chancellor meets their calls.

The regime requires major banks to separate their retail operations from their investment activities. It was introduced in the wake of the financial crisis to ensure stability.