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On Friday, the European Commission officially reinstated the bill on the banking structure. The proposal would require major banks to separate their trading and investment segments from other banking activities.
On October 24, the Commission announced on October 24 that this would happen. The reason is that the proposal is blocked in the European Parliament since the autumn of 2015.
"It is good that the Commission has finally withdrawn the proposal," said Gunnar Hökmark (M), responsible for the dossier, in A declaration. As the responsible rapporteur in the European Parliament, I came to the majority to say no to the law on separation, and it is therefore logical that the Commission withdraws the proposal completely, "he declared
. [19659005] A division of universal banks had hindered investment, undermined the stability of banks and ensured the operations of banks.Uncertainty created its own systemic risks, he said.
Following the crisis Erkki Liikanen, President of the Bank of Finland, presented a proposal for the separation of high-risk activities from ordinary banking activities on 2 October 2012.
On 29 January 2014, Commissioner Michel Barnier, Commissioner for the Internal Market , presented a bill on compulsory division. (It is now the seat of the Commission for Brexit.)
However, on June 17, 2015, EU [1945901] 1] Finance Ministers agreed not to suggest that risk taking is in any case separate. National regulatory authorities would have the right to decide whether this would be a last resort
The Swedish government strongly supported this position. Finance Minister Magdalena Andersson questioned Financial Markets Commissioner Jonathan Hill on the issue
On 26 May 2015, the Social Democrats, the Left and Greens of the Economic Committee of the European Parliament voted on a proposal by Gunnar Hökmark. Subsequently, Gunnar Hökmark presented a second proposal based on various risk criteria to determine whether regulators would set higher capital requirements for a large bank.
However, the European Parliament could not agree on this proposal. or any other suggestion since. In the absence of a position in Parliament, the legislative process has been set.
Normally, negotiations between Parliament and the Council of Ministers will take place once both sides have reached their version of the bill. In this way, the final version is designed.
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