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, banking products and services like savings accounts, current accounts and payments will need 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 addition banks are required to demonstrate “operational continuity” of their “critical services”. Critical services are the infrastructure services that a Bank’s businesses require to operate. Operational continuity is a requirement to ensure that provision of these critical services is robust and capable of continuing through a period of financial difficulty that a bank may face.
In the US, we are required to implement an Intermediate Holding Company - within which all our US subsidiaries will operate. This sits in Barclays International and was made operational in July 2016.
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.