The Independent Commission on Banking is expected to recommend that UK retail banking arms should be rinfenced within big bank holding companies.
The commission led by Sir John Vickers is likely to propose that UK retail banking divisions should also be separately capitalised, according to the Financial Times.
A source close to the situation told the FT: “The attractions of ringfencing [retail businesses] are multiple. The business we have to keep going at all costs is customer deposits, payment systems, small and medium-sized enterprise lending.
“There is a public interest in preserving that.”
Vickers first mooted the idea of ringfencing retail banks in January.
The commission will publish its interim report on April 11, with a final report in September.