ICB report could spell trouble for investment bank funding
Experts say fencing off retail deposits would leave investment banks struggling to meet key Basel III liquidity ratio
Industry experts have warned UK investment banks would find it difficult to fund themselves if the proposals to ring-fence a bank's retail operations set out in Monday's interim report from the Independent Commission on Banking (ICB) are implemented.
The report isn't clear on whether the envisaged ring-fencing of capital would also extend to funding – but one of the annexes states investment banks would be barred from setting up their own retail deposit business, and says they might need to take
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