•  The use of trading subsidiaries would allow the banking groups to offer “one-stop banking” to their clients, but without the possibility of funding trading activities with insured retail deposits. Financial linkages between the deposit bank and the trading unit would have to be restricted in accordance to normal large exposure rules.
•  Another of our proposals is to develop specific, designated bail-in instruments to improve the loss absorbency of banks. A requirement to issue such bail-in debt would help ensure the participation of investors to the recapitalization of a bank if this should become necessary.