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New EC financial services head seeks completion of review into too-big-to-fail banks

Valdis Dombrovskis, Europeancommissioner for financial stability, financial services and capital marketsunion, said he intends to urge members of the European Parliament to finish areview into the structure of big European banks, The Wall Street Journal reported.

Although Dombrovskis did notclarify if he would call for specific structural changes at lenders, he said"the general idea is, yes, to deal with too-big-to-fail banks."

Such a move would help restartefforts on a regulatory proposal that could ban lenders in the EU fromparticipating in risky trading practices, the paper said in its July 18 report.

Dombrovskis, who Jonathan Hill's rolein addition to his current role as vice president for the euro after Hillstepped down in the wake of the U.K.'s vote to leave the EU, pledged tocontinue the work of his predecessor, including the push for an EU-widecapital markets union.He also intends to act on Hill's review into redundant or overlappingregulations to "look how we can reach the same prudential results in amore growth-friendly way."

Separately, Dombrovskis dismissedthe need for changing banking sector rules if Italy were to need the EU's helpwith its banks, saying there are "solutions which can be reached within[the] EU regulatory framework."

Dombrovskis also expects hisstaff to lay out in 2016 proposals for national insolvency regimes in thecontinent, as well as for dealing with a failed large clearing house, accordingto the report. He added that the EC will propose a plan for collateral rulesfor swaps by the end of July.