Ring-fencing Banks: who is doing it, why and will it work?

The role of banks in the global financial crisis has generated significant public anger. The […]

Policy Study

10/08/2016

The role of banks in the global financial crisis has generated significant public anger. The massive bailout using billions of public sector funds has been seen as something which must not be allowed to happen again. One area which has been the focus of serious criticism is what is seen as the reckless investment banking activity of many of the banks.  This has led to calls for the retail side of banking (in other words, the traditional deposit-taking and lending aspects) to be separated from the riskier activities of the investment banking side.

Since then, the banking part of the financial system has been strengthened as banks are now required to hold increased levels of capital and formal resolution mechanisms for failing banks and financial institutions have been introduced, bringing further improvements. The new EU bank resolution regime specifically seeks to overcome some of the difficulties that are associated with resolving failing institutions where they are based across more than one Member State.  At the same time, efforts are being made to harmonise depositor protection in the EU.  All this work is the result of a significant effort from the international financial community in an attempt to address the problem of banks which have been considered “too big to fail”.[ There is another proposed reform which has become known as ‘ring-fencing’ and which is the focus of this article. 

Read the study

Find all related publications
Publications
28/06/2022

Sustainable Digital Market Design: A data-based approach to the circular economy

Markets must be designed properly to serve the common good. This is particularly evident in […]
20/06/2022

Talking Green in Europe

Lessons on re-framing the public debate on the climate crisis
13/06/2022

Just Transition & Revitalisation – A New EU Strategy for Rural Areas

How can EU actions support the revitalisation of rural areas? How can EU institutions put […]
25/05/2022

Voting during pandemics: making democracy resilient in turbulent times

Although many volumes have already discussed several COVID-related socio-economic phenomena, relatively less attention has been […]
Find all related news
News
21/06/2022

Ahead of this week’s European Council, progressive MEPs and MPs urge EU leaders to take resolute actions toward the Western Balkans

On 17 and 18 June, the ‘Friends of the Western Balkans’, the newly established network […]
17/06/2022

First meeting of the Friends of the Western Balkans

How do we get out of the dead end in the enlargement process?
10/06/2022

FEPS launches a new website!

After months of work, FEPS’s new website is now online!  This new website offers a […]
09/06/2022

FEPS holds the 2022 General Assembly

This week, FEPS held the 2022 General Assembly (GA), the yearly meeting gathering all members […]
Find all related in the media
In the media

Leaders Must Choose a Just Energy Transition and a Social Europe

by Euractiv 30/05/2022

The circular economy and green jobs

by ENCOMPASS 25/05/2022

Da Prodi a Rodrigues, domani al via la ’Terza conferenza sul futuro dell’Europa’

by La Nazione 25/05/2022

Visioni e strategie per disegnare il futuro europeo 

by La Nazione 23/05/2022