Some individual countries – France and Germany, for example – have developed banking structure reforms that specifically address proprietary trading, but it appears that these proposals as well would require only a push-out of certain proprietary trading activities to non-bank affiliates.
Spilling over into an overnight credit and the associated monetary policy implications are to be prevented by repossession of the intraday credit at an earlier closing time and the setting of high penalty rates. I would like to venture a brief look forward to the future payments landscape in Europe.