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.