HSBC will suffer less of a hit than RBS or Barclays because its UK investment bank makes up a lower proportion of its total income. It will have to make some structural changes, however.

And the bank does not welcome the imposition of a ring-fence because its executives believe it unnecessarily complicates the global regulation agenda.

It could also see a hit to its private banking business because most individuals will only be allowed to conduct their personal banking business with ring-fenced entities. High net worth individuals who want to do business directly with their lender’s investment banking operations will have to go through a registration process to gain permission.