Bundesbank’s Dombret dismisses banking separation

dombret-andreas

Separating banking functions will not end the too-big-to-fail problem, according to Andreas Dombret, an executive board member of the Deutsche Bundesbank.

Dombret said there is not a clear case for the divorce of deposit-taking and lending from proprietary trading and investment banking – the key principle underpinning reform proposals from Erkki Liikanen, John Vickers and Paul Volcker. Liikanen's report applies to banking separation in euro-area countries. Germany is the largest economy in the

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