Regarding interest rate policy, although further reductions from the current federal funds rate target of 1 percent are certainly feasible, at this point the scope for using conventional  BIS Review 150/2008  5  interest rate policies to support the economy is obviously limited.
[Slide 25 – The Regulation takes elements from structural reforms previously proposed] [Slide 26 – Banking groups are to be structured in two sub-groups] The Commission proposal leaves an important role for the future judgment of the competent authorities, which in most cases would be the European Central Bank, the EBA and the Commission itself in detailing the separation process and metrics to be used.