In brief, the Group recommends actions in the five following areas:
- Mandatory separation of proprietary trading and other high-risk trading activities.
- Possible additional separation of activities conditional on the recovery and resolution plan.
- Possible amendments to the use of bail-in instruments as a resolution tool.
- A review of capital requirements on trading assets and real estate related loans.
- A strengthening of the governance and control of banks.
The table and graphs above demonstrate the simply massive size of some of Europe's banks, even in comparison to those in the US and Japan. This drives home the fact that, for a banking union to ever really work or be effective there must be combined deposit and resolution fund backing it up, something which the eurozone is now shying away from. This is also a much larger decision than the eurozone is currently making out the banking union and single supervisor creation out to be.