The ringfencing deadline is not the only looming change that will require banks to restructure. AFP / Daniel LEAL-OLIVAS
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Regulators at the Bank of England are quietly getting ready to authorise the creation of the three largest new banks to come into existence in the UK.Ringfencing rules, which were initially recommended by the Independent Commission on Banking chaired by former BoE chief economist John Vickers, apply to all banks with more than £25bn in deposits.Lenders also have to prepare for when Britain leaves the EU in March 2019 – and it remains unclear whether the UK government will secure a transitional arrangement that would allow banks to delay any Brexit-related restructuring for a number of years.Santander is already planning to use the London-based branch of its Spanish parent bank, Banco Santander, to house its UK corporate and investment banking activity outside of the ringfence.Other UK banks, such as Lloyds, will see less of an impact from Brexit on their ringfencing plans because the bulk of their business is in the UK.The PRA, however, is unlikely to give in to the banks' demands.
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