IDEAS home Printed from https://ideas.repec.org/p/zbw/safewh/13.html
   My bibliography  Save this paper

Lessons from the implementation of the Volcker Rule for banking structural reform in the European Union

Author

Listed:
  • Elliott, Douglas J.
  • Rauch, Christian

Abstract

In the United States, on April 1, 2014, the set of rules commonly known as the Volcker Rule, prohibiting proprietary trading activities in banks, became effective. The implementation of this rule took more than three years, as proprietary trading is an inherently vague concept, overlapping strongly with genuinely economically useful activities such as market-making. As a result, the final Rule is a complex and lengthy combination of prohibitions and exemptions. In January 2014, the European Commission put forward its proposal on banking structural reform. The proposal includes a Volcker-like provision, prohibiting large, systemically relevant financial institutions from engaging in proprietary trading or hedge fund-related business. This paper offers lessons to be learned from the implementation process for the Volcker rule in the US for the European regulatory process.

Suggested Citation

  • Elliott, Douglas J. & Rauch, Christian, 2014. "Lessons from the implementation of the Volcker Rule for banking structural reform in the European Union," SAFE White Paper Series 13, Goethe University Frankfurt, Research Center SAFE - Sustainable Architecture for Finance in Europe.
  • Handle: RePEc:zbw:safewh:13
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/96515/1/783722435.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Arnoud W. A. Boot & Lev Ratnovski, 2016. "Banking and Trading," Review of Finance, European Finance Association, vol. 20(6), pages 2219-2246.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    banking separation proposals; proprietary trading ban; Dodd-Frank Act;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:safewh:13. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/csafede.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.