Bank sector reform : France putting up resistance

UK derogation

The compromise on structural reform of the banking sector provides that a state must either separate its banks' retail activities from risky trading (ring-fencing) if its national rules fulfil certain conditions or apply the European reform. This would permit the United Kingdom to keep its national law on the separation of retail activities (Vickers rule). This solution therefore does not permit the application of a single set of rules on the separation of activities to all European countries. Observers nevertheless point out that the UK rules are far more rigid than the European banking sector reform proposed by the Council (no automatic separation of certain activities) as are national laws already adopted by certain states like France.