This paper summarizes the key proposals of the report by the Liikanen Commission. It starts with an explanation of a crisis narrative underlying the Report and its proposals. The proposals aim for a revitalization of market discipline in financial markets. The two main structural proposals of...

Since 2008, enormous efforts have been made worldwide to draft rules to prevent a reoccurence of the devastating financial effects of that year. In the process, bank business has been laid open to intense public and government scrutiny, and regulation of banking has grown to spectacular...