The combination of these two worlds in a universal bank is seen as a source of systemic risk. It is therefore being proposed that they be separated: instead of universal banks there would just be pure commercial and pure investment banks. But why is the combination of commercial and investment banking perceived as a source of systemic risk?
And what specifically are the objectives of those who want to separate them? BIS central bankers’ speeches  1  The general objective when breaking up the banks is to shield those parts that are deemed vital for the real economy from those parts which have little or no connection to the real economy – to shield commercial banking from investment banking.