James Ashton: HSBC - ringfencing yet another problem

Like jets in a holding pattern over a landing strip in the middle of holiday season, banks have a lot going on.

No sooner have they dealt with one regulatory change, another cruises into view. Piling capital on the balance sheet? Check. Bonus cap and clawbacks? Check. A criminal charge for reckless banking? Just seeking clearance to land.

Having to ringfence retail activities including savers’ cash to keep it safe from riskier trading assets by 2019 might seem like a long way off. But HSBC, which has a track record of making good points if not popular ones, appears not to see it that way.

Now the Competition and Markets Authority has launched an inquiry into current accounts and small-business lending, the suggestion is that HSBC might be prompted to sell assets it is spending millions to ringfence.

Something has to give to avoid all this congestion. Maybe ringfencing should be grounded for good.