Tag: Vickers
Commission on Banking Standards Threatens Forced Bank Break-Ups
The FT reports this morning that the Parliamentary Commission on Banking Standards may recommend that UK banks which fail to comply with the Vickers proposals are subject to a complete separation of retail and investment banking activities. It also seems increasingly likely that banks will be subject to frequent checks as to their compliance with […]
European Banking Federation responds to Liikanen
Introduction On 14 November 2012, the European Banking Federation (EBF) published its response to the final report of the Liikanen Group on proposed structural reforms to the EU banking sector. Broadly, the Liikanen Group had recommended the mandatory separation, with respect to all banks exceeding a certain threshold, of trading business from more ‘traditional’ banking […]
Make All Existing Debt “Bail-inable” Say Banks
This is a link to an FT article reporting on evidence given yesterday to the Parliamentary Commission on Banking Standards by Stephen Hester, Chief Executive of Royal Bank of Scotland and Peter Sands, his opposite number at Standard Chartered. Both men support proposals to make all existing unsecured bank debt “bail-inable”, irrespective of maturity. This, […]
IMF Speech on Global Financial Sector Reform
On 26 October 2012, the IMF published a speech given in Toronto by its Managing Director, Christine Lagarde, on global financial sector reform. Ms Lagarde noted that progress had been made on implementing financial sector reform, specifically referring to Basel III and improved standards for the resolution of banks. In particular, she welcomed the EU’s […]
Banking Reform Under Fire
The effectiveness of both the proposed Vickers and Liikanen ringfenced were questioned yesterday during evidence given by Paul Volcker to the UK Parliamentary Commission on Banking Standards. According to this FT article, Mr Volcker described the Vickers ringfence as “difficult to sustain” and full of holes “likely to get bigger over time”. The article also […]
Tough Times for UK Banks: The Liikanen Group Publishes its Final Report
Introduction On 2 October 2012 the High-level Group on reforming the structure of the EU banking sector, chaired by Erkki Liikanen, published its final report. The Group had been charged with the task of assessing whether reforms, additional to those already being implemented or proposed at an EU level and targeted directly at the structure […]
Liikanen Report on EU Banking Reform to be published on 2 October 2012
On 28 September 2012, the EU Commission published a press release confirming that the final report of the Liikanen Committee is due to published on 2 October 2012. The Liikanen Committee is an expert group, formed by the EU Commission in February 2012 and chaired by Erkki Liikanen (former Governor of the Bank of Finland), to investigate […]
EU Banks to face Vickers Style Ringfence?
This is a link to an article in today’s Financial Times (subscription required) regarding the progress of an on-going review into the structure of EU banking. The Liikanen Review was established in November 2011 by Michel Barnier, the EU single market commissioner. It ‘s remit was to examine the need for structural reform of the […]
European Banking Federation Publishes Study on Reform of EU Banking Sector
Introduction On 24 July 2012, the European Banking Federation (“EBF”) published a “Study on the issue of possible reforms to the structure of the EU Banking Sector”. The report is related to the ongoing work of the High Level Expert Group established by the EU Commission to examine the same issue. The report distinguishes regulatory […]