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
The two children of murdered MP Jo Cox will unveil a coat of arms in the Houses of Parliament in a touching tribute to their mother.
Evacuated residents have expressed anger and confusion at unexpectedly being told they had to leave .
Following the Grenfell Tower fire, Thirteen Group has been checking its 20 tower blocks.