The High-level Expert Group on reforming the structure of the EU banking sector presented its report to Commissioner Michel Barnier on 2 October 2012. The Group has been chaired by Governor Erkki Liikanen of the Bank of Finland. The report is available on the European Commission’s website http://ec.europa.eu/internal_market/bank/docs/high-level_expert_group/report_en.pdf.
The report contains recommendations aimed at establishing a safe, stable and efficient banking system serving the needs of citizens, the EU economy and the internal market. To that end, the Group recommends actions in five areas:
- Mandatory separation of proprietary trading and other high risk trading activities within the banking group,
- 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.
Statement by Governor Erkki Liikanen (link)
For further information, please contact:
Esa Jokivuolle, Research Adviser, tel. +358 10 831 2309,
Kimmo Virolainen, Head of Financial Stability and Statistics, tel. +358 10 831 2308, or
Jenni Hellström, Head of Communications, tel. +358 10 831 2632.
Kimmo Virolainen, Head of Financial Stability and Statistics, tel. +358 10 831 2308, or
Jenni Hellström, Head of Communications, tel. +358 10 831 2632.