The ring-fencing proposal from yesterday’s Liikanen report could affect up to 23 of Europe's banks and is particularly negative for Deutsche Bank, according to bank analysts.

Erkki Liikanen, governor of the central bank of Finland, yesterday published his findings into how best to reform the European banking sector. The key proposal was that banks should separate their riskier trading activities, namely proprietary, derivatives and securities trading from the deposit-taking activities of the bank.