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Perol Sees EU Dropping Plan to Split Banks to Preserve Industry

The European Union will likely abandon a plan to split trading businesses from deposit-taking activities because the current proposal would make the region’s banks uncompetitive, said Groupe BPCE Chairman Francois Perol.

Proposals by a group led by Bank of Finland Governor Erkki Liikanen would weaken European banks’ ability to manage stock and bond sales for clients at a time when lenders are cutting loans to meet higher capital requirements, said Perol, head of France’s No. 2 bank by branches. Perol is also chairman of Natixis SA, BPCE’s investment-banking and asset-management arm.