ACT warns of ring-fencing risks

23 August 2011

The Association of Corporate Treasurers (ACT) has warned of the possible consequences for the UK's economy of the Independent Commission on Banking's (ICB's) plans to split the retail and investment arms of the UK's banks.

Representing the top 100 companies in the UK, the group claimed the implementation of too tight a ring-fence on lenders could make it more expensive for firms to borrow money.

James Grout, policy director at the ACT - which provides benchmark qualifications for people working in corporate finance, treasury and risk - said: "If the ICB says it's going to firmly segregate wholesale banking from retail, how will that money get across the barrier?"

The industry figure suggested the split would have a considerable effect on the economy as a whole, with businesses attempting to offset the additional costs by making reductions in other areas - which could lead to job cuts and falls in production.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development