Ring fencing Volcker’s Rule? : The Liikanen Report and justifications for ring fencing and separate legal entities revisited
AbstractThe predecessor paper to this publication, “Volcker/Vickers Hybrid”: The Liikanen Report and Justifications For Ring Fencing and Separate Legal Entities, considered the merits, objectives and cost-benefit attributes of respective models associated with the Vickers Report, Liikanen Report and Volckers Rule – by way of reference to the degree of separation of legal entities or banking activities involved, as well as whether an outright ban or prohibition on proprietary trading is involved. This paper is aimed at highlighting why ring fencing not only presents a more feasible and cost effective option to other models, but also why its degree of flexibility provides the more appropriate balance in a financial environment whose trend is increasingly inclined towards conglomeration.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 53116.
Date of creation: 22 Jan 2014
Date of revision:
Vickers Report; Volcker’s Rule; Liikanen Report; ring fencing; cross-sector services’ risks; liquidity risks; systemic risks; capital requirements; leverage ratios;
Find related papers by JEL classification:
- G2 - Financial Economics - - Financial Institutions and Services
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- K2 - Law and Economics - - Regulation and Business Law
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