BIS’s Caruana criticises Volcker's narrow-banking rule
Narrow banking or splitting up the trading activities of banks as advocated by Paul Volcker, the former Federal Reserve chairman and current adviser to US President Barack Obama, would not help prevent future crises and could create additional burdens for firms, Jaime Caruana, general manager at the Bank for International Settlements (BIS) said today.
“Narrow banking would only ensure credit risks move beyond the regulatory perimeter, with the result that financial instability would then strike
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