0827 GMT - The removal of the ring-fencing regime for U.K. banks could save around 1.5 billion pounds for the sector by scrapping operational, funding and other costs, RBC Capital Markets says in a research note. The CEOs of some of the country's top lenders wrote to the government asking it to abolish this regime, which requires banks with a certain level of core deposits to legally separate their retail banking activities from other operations. "We estimate that circa 160 billion pounds of excess liquidity is currently sitting in U.K. ring-fenced banks," analysts write, noting that this high quantity is likely due to several factors such as years of quantitative easing and higher savings since the pandemic. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 16, 2025 04:27 ET (08:27 GMT)

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