what is the british government s threshold for ring fencing 
the british government introduced a 25 billion threshold on core deposits when it implemented the ring fencing rule in january 2019 this means that eligible banks must ring fence assets above this limit as of 2023 3 this threshold could be raised to 35 billion as the government is reviewing proposals to further strengthen the country s banking and financial sector 6the bottom linerisky investment ventures and a lack of oversight led to major losses failing banks and bailouts during the financial crisis which in turn led to a years long recession in many countries that s why ring fencing was introduced in countries like the united kingdom in countries that require ring fencing it aims to protect the core retail function of banks which is deemed an essential part of the financial industry it also helps shield taxpayers from the heavy burden of having to bail out banks in the event of an economic crisis 