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Banks have lobbied for the rules, which Britain introduced after
the global financial crisis of 2007-09, when taxpayers had to
bail out several lenders, to be scrapped.
The finance ministry has already proposed that the threshold at
which ring fencing applies to banks should increase from 25
billion pounds ($31.83 billion) of deposits to 35 billion
pounds, part of an easing in regulation post-Brexit to keep
London a globally competitive financial centre.
The BoE undertook its own review of the rules.
"The overall conclusion of this review is that most rules are
performing satisfactorily," the BoE's Prudential Regulation
Authority said in a statement, adding that it has identified
some areas for improvement.
"The PRA intends to consult in due course on changes to its
ring-fencing rules after a fuller exploration of the costs and
benefits of the options identified."
The aim of the rules is to isolate retail deposits from any
blow-ups in a bank's riskier activities, such as investment
banking.
Areas for potential improvements include the rules relating to
provision of services from ring fenced banks from non-ring
fenced parts of the lender, the BoE said.
"Although there may be ways to improve the functioning of the
rules, we do not consider that the fundamental approach should
be revisited or that rules should be deleted."
($1 = 0.7854 pounds)
(Reporting by Huw Jones;Editing by Alison Williams and Andrew
Cawthorne)
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