On the other hand, the HLEG proposal would not separate more activities than mandated, and this might be the voluntary outcome in some banks. It would also be very important to ensure that capital requirements are aligned globally to ensure the level playing field of banks.
Now ICB proposal will set the UK banks and foreign subsidiaries in a disadvantaged position in comparison to foreign banks’ non-subsidiary operations in the UK and with non-UK banks which can provide UK customers with financing elsewhere. Finally, I would like to highlight the importance of sufficient loss absorption capacity across business areas.