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Barnier draws up law separating banking activities

20 November 2013, 12:57 CET
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Barnier draws up law separating banking activities

Michel Barnier - Photo EC

(FRANKFURT) - European banks may have to separate their speculative and risky businesses from their regular banking operations, according to draft legislation being drawn up by EU Commissioner Michel Barnier.

In an interview published in the business daily Handelsblatt on Wednesday, Barnier said he intends "to present the legislation by the end of the year".

His proposals will follow up on the Liikanen Report into separating banks' riskier activities from the utility-like operations of retail banking.

European Central Bank Governing Council member Erkki Liikanen led a committee of experts that compiled that report.

Barnier, in the interview, said the legislation is urgent because various rules in member states could undermine the EU's common internal market.

Germany and France have passed such legislation, the newspaper said, while Belgium and the Netherlands are preparing such laws.

"We have to pay attention that national rules do not vary from each other too much, so that comparable competitive conditions are preserved for the banks," Barnier told the newspaper.

"Perhaps my draft will go further than certain national laws," he said. "We have to effectively counter the most speculative activities."


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