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Ringfencing: Overview, How It Works, Example

By Kristi WaterworthUpdated Jul 24, 2025 at 11:48 AM | Fact-checked by Frank Bass

Key Points

  • Ringfencing segregates safer assets from riskier ones to prevent losses from economic downturns.
  • The Financial Services Banking Reform Act of 2013 mandates U.K. banks to separate retail from investment banking.
  • By 2019, large U.K. banks had adapted to these regulations, enhancing depositor safety and financial stability.

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