Lloyds Bank Corporate Markets

Lloyds Bank Corporate Markets is the non "ring-fenced" arm of Lloyds Banking Group. It was created in 2017, to comply with the Financial Services (Banking Reform) Act 2013. The Act implements the Independent Commission on Banking recommendation that essential banking services are separated from investment banking activities by 2019.

Lloyds Bank Corporate Markets Plc
TypeSubsidiary undertaking
IndustryInvestment Banking
Founded2017
Headquarters
London
,
United Kingdom
ParentLloyds Banking Group

As the Group is now primarily focussed on UK retail and commercial banking with moderate capital markets and trading activities, the impact is relatively limited. It is estimated that around 97% of loans and advances will sit within the ring-fence.[1]

Operations

The non ring-fenced entity will incorporate Commercial Banking Markets Financing including loan markets, bonds and asset securitisation, Commercial Banking Financial Markets Products including elements of foreign exchange and rates, the business undertaken by Lloyds Bank International and the Group’s branches in the United States, Singapore and the Crown Dependencies.

The company was authorised with restrictions in 2017 and is currently registered as a Credit Institution with the Financial Conduct Authority and Prudential Regulatory Authority. Until the restrictions are removed, it is limited in its ability to undertake or have migrated to it any regulated financial services activities. In 2018, it was reported that traders will be physically separated from their colleagues and placed in a "glass box" to comply with rules.[2][3]

Fitch Ratings has assigned Lloyds Bank Corporate Markets and Lloyds Bank International expected Long-Term Issuer Default Ratings of 'A(EXP)'.[4]

See also

References
  1. Reilly, Alasdair LPC-UK banks face loan ring-fencing challenge Reuters, 29 September 2017
  2. Spezzati, Stefania and Sidders, Jack Lloyds Is Planning to Place Traders in a Glass Box to Comply With New Rules Bloomberg, 22 January 2018
  3. Withers, Iain Lloyds 'walling off' traders at its City HQ The Daily Telegraph, 22 January 2018
  4. Fitch Rates Lloyds Bank Corporate Markets plc and Lloyds Bank International Ltd 'A(EXP)' Reuters, 17 July 2017
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