Banks seek PRA concessions on ringfencing rules

Some of the UK’s largest banks are looking to secure concessions from the Prudential Regulation Authority over the new ringfencing regime as they seek to fight back against tougher incoming regulations.      

The FT reports lenders are in talks around the details of the John Vickers-proposed regime which requires banks to separate retail business and investment banking arms.

Lloyds Banking Group and Santander UK have the smallest wholesale divisions and claim they could be disproportionately hit by costs of having separate boards, IT systems and risk and finance functions.

The banks are pushing for more overlap between boards and a limit on the number of non-executive directors they have to appoint.

The PRA is set to publish its first consultation paper on governance of British banks in October.