Structural Bank Regulation Initiatives: Approaches and Implications

38 Pages Posted: 16 May 2013  

Leonardo Gambacorta

Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR)

Adrian A. R. J. M. van Rixtel

European Central Bank (ECB)

Date Written: April 1, 2013

Abstract

The paper examines the basic rationale and features of the proposals adopted to separate specific investment and commercial banking activities (Volcker rule, Vickers and Liikanen proposals). In particular, it focuses on the likely implications of such initiatives for: (i) financial stability and systemic risk; (ii) banks' business models; and (iii) the international activities of global banks.

Keywords: regulation, bank business models, systemic risk, economies of scale, economies of scope, too big to fail

JEL Classification: G21, G28

Suggested Citation

Gambacorta, Leonardo and van Rixtel, Adrian A. R. J. M., Structural Bank Regulation Initiatives: Approaches and Implications (April 1, 2013). BIS Working Paper No. 412. Available at SSRN: https://ssrn.com/abstract=2265820

Leonardo Gambacorta (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Adrian A.R.J.M. van Rixtel

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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