A flagship review into the ring-fencing regime for UK banks will be published "imminently", a top official said, hinting that the government could be open to relaxing rules on City lenders put in place in the wake of the financial crisis.

Since 2019, Britain's largest banks have been subject to new capital rules requiring them to hive off their trading and investment operations from their retail divisions. They also require banks to hold extra reserves. The goal is that everyday consumers aren't exposed if there's a meltdown in the investment banking world — like, for example, the collapse of subprime mortgages.