Structural reform of the EU banking sector

EU News 45/2014

Brussels, 29 January 2014
IP/14/85

Today, the European Commission has proposed new rules to stop the biggest and most complex banks from engaging in the risky activity of proprietary trading. The new rules would also give supervisors the power to require those banks to separate certain potentially risky trading activities from their deposit-taking business if the pursuit of such activities compromises financial stability. Alongside this proposal, the Commission has adopted accompanying measures aimed at increasing transparency of certain transactions in the shadow banking sector. These measures complement the overarching reforms already undertaken to strengthen the EU financial sector.

In drafting its proposals, the Commission has taken into account the useful report by the High Level Group chaired by the Governor of the Bank of Finland, Erkki Liikanen (IP/12/1048), as well as existing national rules in some Member States, global thinking on the issue (Financial Stability Board principles) and developments in other jurisdictions.

Source and additional information:
http://europa.eu/rapid/press-release_IP-14-85_en.htm?locale=en

Michel Barnier Date: 29/01/2014 Reference: P-024877/00-06 Location: Brussels - EC/Berlaymont (C)EU, 2014 URL

 

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