|
|
British and French banks are calling on Brussels to “look afresh” at these plans given the incoming commission’s objective to unblock the flow of credit to the real economy and avoid unnecessary EU-level interventions.
The bank structure reform is part of the EU’s attempt to handle banks that are too big to fail. It includes curbs on banks betting with their own funds and powers for regulators to hive off risky trading activities.
Its future is one of the most sensitive political decisions Lord Hill will take this year. During his confirmation hearing to become commissioner, Lord Hill promised to “take forward” the proposal, without making clear how.
It has the strong backing of the Socialists and Greens in the European parliament, but other blocs oppose many of the key elements and it has few enthusiastic supporters among EU member states.
The British Bankers’ Association and the French Banking Federation, in a joint letter to the commission, argue that Brussels’ initiative is outdated, harmful to capital markets and complicates the implementation of existing national laws, such as the UK’s Vickers reforms and more modest structural changes in France.
Full article on Financial Times (subscription required)