The Independent Commission on Banking, appointed by the British government, launched a proposal that involves the separation of consumer and securities units, to form so called ring-fenced units, from investment banks by 2019 in a new step to protect the banking system from the effects of the financial crisis.

The plan which will cost 7 billion pounds was welcomed by the Chancellor of the Exchequer, George Osborne.

The new ring-fenced units will include checking accounts, mortgages, credit cards and lending to small- and medium-sized companies while will exclude trading and investment banking activities to protect customers and taxpayers and maintain financial stability.