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Economics glossary · Policy and the financial sector

Ring-fencing

What ring-fencing means in economics, as one of the main UK reforms after 2008, with an example and a question to test yourself.

Definition
Ring-fencing
Ring-fencing separates core retail banking services from investment banking at the largest banks, to protect depositors from risks arising elsewhere in the bank.
Example

Can you think of an example of ring-fencing?

Test yourself

Can you name the four main reforms the UK made to bank regulation after 2008?

Learn it properly: the module

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