Lloyds Bank has shifted core elements of its investment bank ahead of the implementation of new ring-fencing rules in the United Kingdom, facilitating a consolidation of its capital and financial markets, according to a recent Reuters report.
The UK is primed to undergo some new ring-fencing rules, which build on an existing pool of deposit requirements and other measures. In particular, the Bank of England’s (BoE) ring-fencing rules will foster a schism of UK banks’ retail and investment banking operations, though this shift is not expected to take effect until 2019.
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Regulatory Shift Prompting Internal Shift
In anticipation of this regulatory change, Lloyds is merging its capital and financial markets into a singular unit, which will now be headed by Lloyds’ Managing Director of Capital Markets, James Garvey. In accordance with the new promotion, Mr. Garvey will be heading Lloyds’ trading business, who will oversee the responsibility as the head of the new Commercial Banking Markets division.
The appointment will be tendered upon the departure of Lloyds’ Head of Financial markets Richard Moore, who is slated to leave the bank next year. Per the move, Mr. Garvey will be reporting to Andrew Bester, Lloyds Chief Executive of Commercial Banking.