S&D Euro MPs today urged the European Commission to "study seriously" the separation of banking activities as part of the overall discussion on the banking union.
The call came following the recommendations made by an independent panel of experts led by the governor of the Bank of Finland, Erkki Liikanen, on reforms in the banking sector.
S&D Group leader Hannes Swoboda said:
"The recommendations of the Liikanen Group are an important contribution to the ongoing discussions on reforming the banking sector. They cannot be seen as something separate from the proposals on the banking union or on the capital requirements for banks.
"We invite the Commission to look into the separation of banking activities. The two models – a total separation of retail banking and investment banking or a ring-fencing of the separate activities – should be intensively studied.
"Only after a careful comparison will the S&D Group come to a final decision on which model to choose: the ring-fencing proposed by the Liikanen Group or a more structural separation between speculative and commercial banking models.
"The EU needs a strong system of prevention, supervision and crisis management so that taxpayers' money is not used to bail out banks in the future. This should be our ultimate goal."
During a visit to London earlier this week, Hannes Swoboda also stressed:
"Concerning banking supervision in the framework of the banking union, the S&D Group will insist on efficient co-operation between the European Central Bank and the European banking authority."
He also underlined the need for more transparency on financial markets:
"Financial services must reduce the complexity of their products and ensure better information is available for investors and consumers alike."
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