Fresh concerns have been raised over the Independent Commission on Banking's preferred option to ringfence the retail operations of banks, with the International Centre for Financial Regulation warning that it could create "false sense of confidence".

In a submission to the ICB made public today, the ICFR, the London-based financial regulatory think tank, warns against forcing bankers to ringfence their retail banking units, one of the measures it is considering in its review of financial stability in the UK banking sector.