Our approach to ring-fencing

As a simple, UK retail and commercial bank, the impact on the Group is relatively limited and there will be minimal impact for the majority of the Group’s retail and commercial customers.

The majority of our Bank of Scotland, Lloyds Bank and Halifax banking activities including current accounts, savings and deposits will be ring-fenced and we are setting up a new bank so that we can continue offering products and services.

We are setting up a new bank

We are setting up Lloyds Bank Corporate Markets plc* as our non-ring-fenced bank so that we can offer products and services which will not be available from Lloyds Bank plc and Bank of Scotland plc (the ring-fenced banks) under the new legislation. Our plans are currently being reviewed by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). Both the ring-fenced banks and non-ring-fenced banks will remain part of the wider Lloyds Banking Group but will operate as separate banks.

Once we have completed our ring-fencing changes, Lloyds Banking Group will comprise of the following:

A ring-fenced sub-group: including the majority of our Bank of Scotland, Lloyds Bank and Halifax banking activities including current accounts, savings and deposits.

A non-ring-fenced sub-group: Primarily for Commercial Banking Markets Financing (including loan markets, bonds and asset securitisation), Commercial Banking Financial Markets Products (including elements of FX and rates), the business undertaken by Lloyds Bank International Ltd and the Group’s branches in the United States, Singapore and Crown Dependencies.

An insurance sub-group: Scottish Widows Group Ltd and subsidiaries.

An equity investments sub-group: Lloyds Development Capital and other strategic investments.

Each sub-group will operate alongside but independently from each other within Lloyds Banking Group.

A structure chart showing the Group structure upon completion of our ring-fencing changes is shown below.


*  Lloyds Bank Corporate Markets plc is the business name for Lloyds Banking Group’s new non-ring-fenced Bank. Lloyds Bank Corporate Markets plc was authorised with restrictions on 25 July 2017, and is now registered as a Credit Institution on both the Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA) websites (Reference number: 763256). Until the restrictions are removed by the FCA and the PRA, Lloyds Bank Corporate Markets plc is limited in its ability to undertake or have migrated to it any regulated financial services activities.