Global Financial Strategy

Search the site   >>Advanced search
First for financial regulatory news and views
HOME   |   REGISTER   |   SUBSCRIBE   |   NEWS   |   ANALYSIS   |   INTERVIEWS & FEATURES   |   EVENTS   |   MUTTERS   |   JOBS   |   MY ACCOUNT
EUROPE   |    US & CANADA   |    ASIA PACIFIC   |    MIDDLE EAST & AFRICA   |    LATIN AMERICA & CARIBBEAN   |    OFFSHORE   |    SINGAPORE   |    HONG KONG
TRADING   |    CASINO MARKET   |    BANKING   |    INSURANCE   |    FINANCIAL REPORTING   |    TAXATION   |    MACROECONOMIC   |    PROFILES   |   CONTACT   |   
  • MF Global spoke of 'strong' finances
  • EC: No corp gov powers for ESAs
  • FSA appoints senior investment bank adviser
  • GFS has now closed
  • Czechs join UK on fiscal compact sidelines
  • Davos stalemate on EU's IMF funds
  • Tucker: Resolution regime 'top priority'
  • Saudi Arabia increases central bank role
  • FSB urges Canada for one securities regulator
  • CFTC set for committee to scrutinise HFT
  • Fitch downgrades Belgian banks
  • What corruption really costs
  • UK FSA pushes for Mifid II rethink on OTCs
  • Shanghai boosts global financial status
  • Canada aligns credit rating rules with EU
  • Bowles blasts lack of women at ECB
  • Sarkozy to introduce French FTT in August
  • Barnier warns on further bonus reforms
GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed
You must be logged in to use this function.


Barnier panel to look at Vickers for EU

Friday 25 November 2011 – by [email protected]


A high-level committee to be set up by commissioner Michel Barnier will look at whether the UK’s ring-fencing requirements could be applied to the EU as a whole.

A commission source told Global Financial Strategy that the committee will analyse the benefits of “moving from differentiation, to segregation and to separation” of banking activities.

“There are clearly pros and cons to that, there’s a heavy cost in terms of structural implications if you separate, but there could obviously be benefits,” they said.

The committee will aim to look at how best to isolate risk, ensuring that the commission has enough information before it takes a decision about the future structure of banks in the EU.

Explicitly referencing the UK’s Independent Commission on Banking Supervision, the source added that questions remained about the working details of the final proposals.

“From a Vickers perspective we’ve always said that Vickers is applicable with EU rules…we have always said that we understand why the UK is doing this and we respect it.

Related articles:
Barnier panel to consider EU ring-fences
Barnier: Vickers’ capital plan is workable
Vickers: low chance of banks leaving UK
Barnier under fire from UK parliament

“Whether at this stage we could think of it as the model for the rest of Europe, we don’t know right now.

“We’re willing to look at whether there are things to take from it or lessons to be learned.”

In addition, provisions of the US Volcker Rule will be examined, they added, labelling the possible proprietary trading ban as “equally interesting”.

If the Vickers model were to be implemented, questions remain about the whether the ring-fenced retail bank would have to pay for losses of the investment bank, and whether capital requirements could be lowered for retail banks that are taking less risk, the source added.

Details of the committee emerged during Michel Barnier’s appearance earlier this week in front of the European Parliament. The source confirmed that the committee will consist of a “handful” of members from different sectors, and it will be expected to consult widely before issuing a final report either in late spring or early summer 2012.

Barnier is “not calling into question the universal banking system per se” but the committee will explore if there are better ways to isolate against risks, the source added.



WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

No comments yet.
Login Register Most read Most commented
Username

Password

>> Forgotten your password?
>> Sign Up  

GFS is pleased to offer you a two-week free trial. You will receive a daily email bulletin of the latest regulatory news and analysis and a weekly email round-up. Please complete the free trial form. You will also receive full access to our online site.

EDITOR’S CHOICE

  • Diamond warns against ‘Balkanisation’
  • ABI: UK insurers must keep EU links
  • EU Parliament site hit by hacktivists
  • George Soros: New year, same crisis
  • FSB: Swiss regulator needs more teeth
  • OCC: Deriv fears are an overreaction
  • ‘Major wave’ of Solvency II drafts in May
  • IMF paper urges Aus bank capital boost
  • BoE: Limit bonuses to boost bank capital
  • 2012 vision: Increased regulatory exposure looms
  • Barnier offers hope to NYSE/Boerse
  • Esma rushes short selling consultation
  • Bowles re-elected as Econ chair
  • Hoogervorst hints at accounting slowdown
  • Asia in the year of the dragon
  • Barnier: FTT will not be forced on UK
INTERVIEWS & FEATURES

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don’t know

View results

FIND A REGION
 
Global Financial Strategy - [email protected] | Home | Legal | Contact design by SDV