Abstract

Within the context of structural bank reforms, ‘ring-fencing’ has come to be used as a catchword for a broader move towards the segregation of commercial and investment banking in the United States and a number of European jurisdictions, with legislation underway for an EU Regulation on structural measures improving the resilience of EU credit institutions. Traditionally, the term has referred to regulatory strategies employed by host-country authorities in cross-border settings, which involve the segregation of local branches and subsidiaries from a multinational banking group. Against this background, the present paper promotes an integrated, functional understanding of ring-fencing in the context of banking regulation and defines some strategic questions for future structural reform.

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