EU says banks should split risky trading from banking

The review was set up to look at whether banks should be structurally reformed to avoid another crisis.

The group agreed that banks should separate certain high-risk banking activities from everyday banking.

Banks likely to be affected include Deutsche Bank and BNP Paribas.

The report's suggestions echo those put forward in a report into the UK banking sector by Sir John Vickers.

Both reports also said banks should have higher capital "buffers" to protect against future banking crises.

The plans, which the group said should be discussed before the end of the year, are just one of a number of high-level reviews of the banking sector.

The report will be passed to EU internal markets commissioner Michel Barnier, who will make the decision on whether to present proposals in line with its recommendations.

Source & Image : BBC