Following the current financial crisis, different economies are working on instituting various banking regulations in the international perspective, in the form of different initiatives, all aimed towards the establishment of stable international banking relations (Gambacorta and Rixtel, 2013, 19). As such, legislation on the European Union’s banking structural reform is currently being determined, from which European Union banks are required to have a distinction between investment businesses from the retail businesses. However, in the case of United States banks, a different perspective is visible, especially on the separation aspect of investment business and the retail businesses. In the United States, the separation aspect is not a requirement for United States banks. however, for the other banks of non-American origin operating inU.S., would require that the banks have operations under a single U.S. holding company. For the achievement of such an aspect, a number of modifications would be necessary, especially for the EU banks with affiliated US businesses. In order to achieve such a perspective, a number of aspects have appeared including the Volcker rule, Vickers proposal, Liikanen, as well as other recent European initiatives.
The major reason for the development of the different initiatives is to establish an insulation of various financial aspects with substantive importance to the economy. Equally, the initiatives seek to offer protection to consumers from risky, though less important activities.