Tory MP Greg Clark, the Financial Secretary to the Treasury, said the Banking Reform Bill set to be introduced by George Osborne today will protect taxpayers.
He told the BBC:
We don't want the taxpayer to have to stump up to rescue the banks again, that's what this is about.
We need to get out of the situation where banks are too big to fail, or too complex to be sorted out in a crisis.
The ring fence will make sure banking services provided to people and businesses will continue in the event of the failure of the bank, without the taxpayer supporting it.
More top news
Margaret Rigby spent £57,000 of her friend's money on luxury goods for herself, after gaining power of attorney
Turning colder with blustery showers in the north
Internal review comes after allegations that the agency may have gathered information unlawfully in four major investigations