How Liikanen will impact Vickers implementation

Author: | Published: 12 Oct 2012

European banking reforms, as proposed by the Liikanen Commission, are likely to supersede or replace the UK’s Vickers, lawyers have predicted.

The Liikanen Commission, led by Bank of Finland Governor Erkki Liikanen, last week recommended far-reaching bank reforms in the EU, that include separating risky trading activities from banks’ deposit-taking function, and new rules on capital reserves and bonuses.

The move prompted concern as to how the EU’s banking reforms would impact implementation of - and banks’ preparation for - the conflicting recommendations of Sir John Vickers’ state-endorsed commission on banking. There are obvious similarities between Liikanen’s proposed reforms and the Vickers report, which will result in the retail banking activity being ring-fenced from the investment bank for major UK banks by...