IDEAS home Printed from https://ideas.repec.org/a/rbq/journl/i135p37-48.html
   My bibliography  Save this article

Reforming the Structures of the EU Banking Sector: Risks and Challenges

Author

Listed:
  • Régis Breton

    (Banque de France)

  • Laurent Clerc

    (Banque de France)

Abstract

The paper discusses the rationale for implementing structural reforms in the banking sector in Europe aiming at separating risky/speculative from retail banking activities. From a financial stability point of view, while acknowledging that there is no optimal banking structure, we argue that any attempt to reform banking structure should address the following challenges: (i) Preserve the benefits of the universal banking model;(ii) Draw effective and welfare-improving lines between speculative and economically needed banking activities; (iii) Finally, ensure the viability of the trading entity to avoid two pitfalls: the inception of systemic trading entities and the migration of activities outside the regulated sector (shadow banking).

Suggested Citation

  • Régis Breton & Laurent Clerc, 2015. "Reforming the Structures of the EU Banking Sector: Risks and Challenges," Bankers, Markets & Investors, ESKA Publishing, issue 135, pages 37-48, March-Apr.
    • Handle: RePEc:rbq:journl:i:135:p:37-48
    as

    Download full text from publisher

    File URL: http://www.revue-banque.fr/article/reforming-structures-eu-banking-sector-risks-and-c
    Download Restriction: price
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xi Yang & Michael Brei, 2019. "The universal bank model: Synergy or vulnerability?," Journal of Banking Regulation, Palgrave Macmillan, vol. 20(4), pages 312-327, December.

    More about this item

    Keywords

    Ring Fencing; Bank Business Models; Banking Regulation;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbq:journl:i:135:p:37-48. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marise Urbano (email available below). General contact details of provider: http://www.eska.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.