Banks in the UK will be subjected to different regulatory supervision in the near future, it has emerged.
Chancellor George Osborne is set to announce a number of policy changes later this week (14 June) that will include handing the power of the Independent Commission on Banking's recommendations primarily to the Bank of England (BoE), the Sunday Telegraph reports.
During a speech regarding the government's banking reforms to be delivered at Mansion House, it is thought Mr Osborne will announce that a system of prescriptive regulation is no longer seen as the most effective way of solidifying the financial sector.
As such he will grant "significant" control over alterations to the industry - such as the introduction of ring-fencing - to the new Prudential Regulation Authority, a body that will be managed by the BoE.
John Liver of Ernst & Young told the news source these changes will be "transformational for the UK banking system".
By Asim Shah