EU Risky Banking Ban

EU Risky Banking Ban.

The European Commission have proposed new plans to help curb riskier trading in the banking sector.

The new plans which contains legislation to ring-fence retail from investment divisions and ban banks from using their own funds for investing. However these new plans have already received criticism stating the legislation does not go far enough.

The new plans may not be in place pre-2017 as the new proposals need approval from all countries of the European Parliament. The documentation for the new proposed legislation explained proprietary trading in which a bank will use its own money to boost profits, carried many risks but no “tangible benefits for the banks clients or the wider economy”.

The new plans should strengthen the banks stability and stop the risk of tax payers having to pay for the banks mistakes.