ICSA Ireland

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Proposed structural reform of the Banking Sector – publication of new rules for large European Banks

14 January 2014

The new rules would give banking supervisors the power to force those banks to separate certain risky trading activities from their deposit taking activities if the pursuit of such activities compromised their financial stability.

In addition to this, the Commission has adopted accompanying requirements aimed at increasing transparency of certain transactions in the shadow banking sector.  These requirements are designed to support the reforms already taken to strengthen the financial sector within the European Union.

In drafting the proposals, the Commission has drawn on some of the proposals from the 2012 Commission report chaired by Erkki Liikanen, (Governor of the Bank of Finland).

Please see the link from the EU Commissioner Michel Barnier for a more detailed overview of the proposals.