The Commission is consulting on reforming the structure of the EU banking sector. It considers:
- the problems that reforming the structure could address: the paper looks at the risk large banking groups pose, often because much of their activity is unrestricted or subject only to limited restrictions;
- the necessity of EU action: the paper says interconnected economies and cross-border business make it necessary to have an EU-wide approach, and that national approaches alone will lead to fragmentation; and
- the main options the Commission is contemplating. The main decisions the Commission must make relate to which banks should be subject to separation, and the nature and strength of that separation.
It asks for comment by 3 July. (Source: Commission Consults on Banking Structure)