Resistance to EU curbs on risky banking

The European Union’s bid to set structure rules for about 30 of the bloc’s biggest banks has run into resistance from countries opposed to a planned proprietary trading ban.

A “substantial number of countries” have “expressed serious concerns or reservations” about the proposed ban, according to a report prepared by Italy, which holds the EU’s rotating presidency. “Only very few countries are explicitly in favour.”

The proposal for banking-structure reform by Michel Barnier, the EU’s financial services chief, has come under attack on multiple fronts since he presented it in January. In addition to the proprietary-trading ban, Mr Barnier set out EU-wide standards for splitting up the most systemically important banks that would push certain kinds of derivatives and other trading activities into separately capitalised units.