Banks braced for trading activities review

Preview, reports and analysis of a report of a High-level Expert Group on possible reforms to the structure of the EU banking sector (Chairman: Erkki Liikanen ), set up in 2011 and published on the 2 October 2012.

The Group recommendeded actions in the five following areas:

+ Mandatory separation of proprietary trading and other high-risk trading activities,

+ possible additional separation of activities conditional on the recovery and resolution plan,

+ Possible amendments to the use of bail-in instruments as a resolution tool,

+ A review of capital requirements on trading assets and real estate related loans, and

+ A strengthening of the governance and control of banks.

ESO: Background information: Commissioner Barnier appoints members of a High-level Expert Group on possible reforms to the structure of the EU banking sector http://www.europeansources.info/record/memo-commissioner-barnier-appoints-members-of-a-high-level-expert-group-on-possible-reforms-to-the-structure-of-the-eu-banking-sector/

European Commission; DG Internal Market and Services: Banking: Expert Groups: High-level Expert Group on possible reforms to the structure of the EU banking sector http://ec.europa.eu/internal_market/bank/group_of_experts/index_en.htm#High-level_Expert_Group

European Commission: RAPID: Press Release: IP/12/1048: High-level Expert group on reforming the structure of the EU banking sector presents its report http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/1048&format=PDF&aged=0&language=EN&guiLanguage=en

EurActiv, 2.10.12: Liikanen group urges splitting retail, high-risk banking http://www.euractiv.com/euro-finance/liikanen-group-urges-splitting-r-news-515128

EUObserver, 2.10.12: Banks should separate deposits from risky trading, group says http://euobserver.com/economic/117724

BBC News, 2.10.12: EU says banks should split risky trading from banking http://www.bbc.co.uk/news/business-19798576

---