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Finance

Structural reform of the EU banking sector

Information on the European Commission's proposal on banking structural reform, which aims to strengthen the stability of the largest banks.

Proposal

In order to strengthen the stability and resilience of the EU banking system, the European Commission proposed a regulation to stop the largest and most complex banks from engaging in the risky activity of proprietary trading, which means trading using the bank's own money as opposed to money invested by customers.

Under the proposal, supervisors could also require banks to separate certain risky trading activities from their deposit-taking business if these activities compromise financial stability.

The proposal builds on the recommendations of the Liikanen report, presented in October 2012 by the high-level expert group on reforming the structure of the EU banking sector.

In July 2018, the Commission decided to withdraw the proposal as its purpose had in the meantime to a large extent been achieved by other measures.

Documents

Report | | Directorate-General for Financial Stability, Financial Services and Capital Markets Union

Liikanen report

Consultation on the structural Reform of the Banking Sector - 16 May 2013

Consultation on the recommendations of the High-level Expert Group - 2 October 2012

Consultation by the High-level Expert Group on reforming the structure of the EU banking sector - 3 May 2012