CBI welcomes progress on implementing the ring-fence of retail banks
26 Jun 2014 03:42 PM
The CBI commented on the
Government’s progress on implementing the ring-fence of retail
banks.
Matthew Fell, CBI Director for
Competitive Markets, said:
"Businesses want a
financial system that is both stable and able to provide the full suite of
products and services it needs to grow sustainably. The Government’s
decision on what products to include within the ring-fence strikes a sensible
balance between these two objectives.
"Making changes to ensure
that simple options and normal trade finance activities are within the
ring-fence is an important step to ensuring banks can continue to serve
medium-sized businesses as they grow and expand into new
markets.
"Trade finance has a
crucial role to play if businesses are to meet the Prime Minister’s
ambitious target for doubling exports by 2020, so it is good that it can be
easily accessed through retail banks.
"Simple Options can, for
example, enable firms to hedge their currency risk, contingent on winning a
contract, so they are a useful risk management tool for businesses bidding for
orders overseas."