Ring-Fencing
Also called: ringfencing, structural separation, bank ring-fence
Ring-fencing legally separates a bank's retail deposit-taking business from its investment banking, with separate capital and governance, so a trading loss cannot reach insured deposits. The UK implemented it after 2008 as an alternative to full Glass-Steagall separation. It raises costs by fragmenting capital and liquidity, which is the trade-off deliberately accepted for containment.