Ring fence: Difference between revisions
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imported>Doug Williamson (Link with Hypothecation page.) |
imported>Doug Williamson (Expand first definition. Source: The Treasurer, November 2015, p49.) |
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For example, to shield particular assets from the claims of the creditors of the non-ring fenced part of the entity. | For example, to shield particular assets from the claims of the creditors of the non-ring fenced part of the entity. | ||
In the banking context, a 'ring fence' is the separation of some aspects of commercial banking (mostly retail) into a separate entity to reduce the probability of failure. | |||
Revision as of 20:59, 8 November 2015
1.
To legally separate particular assets or liabilities within a company or other organisation.
For example, to shield particular assets from the claims of the creditors of the non-ring fenced part of the entity.
In the banking context, a 'ring fence' is the separation of some aspects of commercial banking (mostly retail) into a separate entity to reduce the probability of failure.
2.
The legal barrier created for this purpose.
Sometimes written "ringfence".
See also
