The Liikanen report

2 Oct    Europe Banking

High-level Expert Group on reforming the structure of the EU banking sector.

The Liikanen report propose it is not enough with increased capital adequacy and liquidity requirements. European banks should also be split into two parts, traditional banking should be separated from trading divisions.

The High-level Expert Group was requested to consider in depth whether there is a need for structural reforms of the EU banking sector or not and to make any relevant proposals as appropriate, with the 
objective of establishing a safe, stable and efficient banking system serving the needs of citizens, the EU economy and the internal market.
Download the report

August 8 2012
According to creditrating institute Moody’s European banks plan to reduce their assets by almost €2.0 trillion in 2011-13. Read article

Risk weights
Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR), is a ratio of a bank’s capital to its risk. Read more at Wikipedia.

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