Separation of Banking Activities
/ˌsɛpəˈreɪʃən əv ˈbæŋkɪŋ ækˈtɪvɪtiz/
Definitions
- (n.) The regulatory practice or legal mandate requiring distinct separation between different banking functions, such as investment banking and commercial banking, to reduce conflicts of interest and systemic risk.
Regulators enforce the separation of banking activities to prevent financial crises.
Forms
- separation of banking activities
Related terms
See also
Commentary
The term is central to banking law and financial regulation; clear drafting distinguishes separation from mere operational divisions by emphasizing legal or regulatory mandates.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.