Is your proposal the same as ring-fencing?

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No. Ring-fencing will not stop banks lending too much, into the wrong things. Banks will still be able to create money by making loans, meaning that if there is another crash, the government will still have to bail them out. The idea is that with the ring-fence banks doing risky-lending activities will be reigned in, but nothing fundamental changes. We are proposing that money which customers want to hold risk-free is not used for lending or investment at all, and that the payment system (which is essential to the rest of the real economy) is separated from the risky activities of banks.

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