The European Commission has received the report prepared by the High-level Expert Group on reforming the structure of the EU banking sector. The Group was chaired by Erkki Liikanen.

In brief, the Group recommends 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.