Liikanen Report: market concerns

Author: | Published: 11 Oct 2012

UK lawyers have branded the Liikanen Committee’s recommendations for European banking sector reform as counterproductive.

The High-level Expert Group, chaired by Bank of Finland governor Erkki Liikanen, was set up by European Commissioner Michel Barnier in November 2011 to assess the need for bank structural reforms.

It last week revealed a series of proposed reforms, which aim to address European banks’ excessive risk taking and excessive reliance on short-term funding.

But Morrison & Foerster’s capital markets partner, Jeremy Jennings-Mares, said the review created even more uncertainty for UK banks.


“This is counterproductive at a time when there is already a lot of uncertainty as to how the upcoming legislation, such as CRD IV, is going to pan out,” he said.


The key changes

The Liikanen Commission last week proposed a mandatory separation of proprietary trading and other high-risk trading activities, a possible...