On the Separation of Banking Activities

Project Start: 03/2013
Status: Completed
Researchers: Jan Pieter Krahnen, Felix Noth, Christian Rauch, Ulrich Schüwer
Category: Financial Institutions
Funded by: LOEWE

In the wake of the recent financial crisis, various regulatory actions were taken to change banking structures, with the aim to reduce bank risk-taking. Most prominently, the US introduced the Volcker Rule, the UK the Vickers reforms, and the EU the Liikanen and Barnier proposals. All these legislations aim at separating investment banking/propietary trading from commercial banking activities. There is a strong ongoing discussion on how these regulations will affect banks, their business models, and the possible economic consequences. The Task Force analyzes and compares the different proposals in the light of modern day banking business and assesses the economic consequences of these proposals.

Related Published Papers

Author/s Title Year Research Area Keywords
Jan Pieter Krahnen, Felix Noth, Ulrich Schüwer Structural Reforms in Banking: The Role of Trading
Journal of Financial Regulation
2017 Financial Institutions banking, structural reforms, prohibition of proprietary trading, banking separation

Related Policy Publications

Author Title Published
Jan Pieter Krahnen,
Felix Noth,
Ulrich Schüwer
Structural Reforms in Banking: The Role of Trading
White Paper No. 33
2016

 

Back