Plans to force UK banks to prepare 'living wills' so they can be dismantled more easily in a crisis have started to be drawn up by the City watchdog.

Large UK banks will be required to detail what businesses they would sell to raise emergency funds and allow them to wind up their trading books within 60 days of a collapse, under the plans by the Financial Services Authority.

Much of the contingency planning would be focused on planned measures to reduce risk and stabilise funding, but banks would also have to make plans to safeguard client assets and wind down their trading books.

Financial Times