ABSTRACT
This chapter focuses on evaluating the EU Bank Structural Regulation (BSR) and makes a case for a well-structured separation reform. It is undeniable that the banking industry has expanded at a perilous and unparalleled rate, and witnessed one of the most glorious ages of boom on the path to financial modernisation. The chapter also focuses on whether the BSR reform has regard to and is capable of containing the behavioural factors in the Too big to fail (TBTF) bank structural problem. The contagion effect was one of the main issues in the TBTF bank structural problem that doomed the banking industry. In other words, the trading entity excessively exploited the low-cost wholesale funding sources and used them for business expansion in investment banking and trading activities. A better-supervised and safer banking sector under enhanced price-based measures can of course promote the resilience of it to any problem, including the bank structural problem.
