Frequently asked questions (FAQs)
What is ring-fencing?
Structural Reform, sometimes referred to from a UK perspective as ‘ring-fencing’, aims to create a safer and more resilient banking system within which institutions will be more easily resolved without access to government funds. The regulatory requirements driving Structural Reform vary in different countries but for Barclays it’s principally driven by those of the UK and the US.
In the UK, it is driven by legislation introduced by the Government that aims to make the banking system more resilient in the event of another financial crisis. It will require banking products and services like savings accounts, current accounts and payments to be separated from more complex products like derivatives, and from activities that are conducted in locations and markets outside the UK and European economic area.
In the US, we are required to implement an Intermediate Holding Company - within which all our US subsidiaries will operate. This will sit in Barclays International.
What does Structural Reform mean for Barclays’ customers and clients?
Barclays has announced a structure which is simpler, will accelerate strategy and prepare the bank for Structural Reform. This has no immediate impact on customers or clients. As we work towards the delivery of our Structural Reform requirements between now and January 2019, we will contact our customers and clients in good time if they are affected.