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Europe's biggest banks would be affected,
should these changes be brought in
A European Union advisory group says that Europe's banks should be split into separate legal entities, in order to protect ordinary retail banking from risky trading.
The review was set up to look at whether banks should be structurally reformed to avoid another crisis.
The group agreed that banks should separate certain high-risk banking activities from everyday banking.
Banks likely to be affected include Deutsche Bank and BNP Paribas.
The report's suggestions echo those put forward in a report into the UK banking sector by Sir John Vickers and proposals in the US, both designed to avert further banking crises in these countries.
The EU's report also looked at the risks of lending on properties, and recommends it should be underpinned with larger capital reserves.
It also examined ways of spreading the risk burden of a collapsed bank to a wider group, so that bondholders, as well as shareholders and the state, would take some of the losses in future.
It suggested that bankers should accept such a bond, the value of which would fall if risky trades or lending lost money, as part of their bonus.
The report also says banks should have higher capital "buffers" to protect against future banking crises.
The EU report's plans, which the group said should be discussed before the end of the year, are just one of a number of high-level reviews of the banking sector.
The report will be passed to EU internal markets commissioner Michel Barnier, who will make the decision on whether to present proposals in line with its recommendations and whose officials write the first draft of new laws.
Mr Barnier said: "The Commission will look at the impact of these recommendations both on growth and on the safety and integrity of financial services."