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Definition of

Volcker rule


US restriction on banks' investment activities in the United States, a federal government proposal, in response to the global banking crisis of 2007–08, that no bank or financial institution that contains a bank can own, invest in, or sponsor, for its own profit, hedge funds, private equity funds, or proprietary trading operations that are unrelated to serving customers. The effect of this is to separate banking operations from trading activities.

Recommended Further Reading (Term count)
  • Testing Times: Global Banking Regulation
    by Brian Caplen
    This article was first published in Quantum magazine.In the past regulators came under fire for allowing the banks too much rope, but now—with new regulatory bodies springing up—the worry is that politicians will exploit a deeper involvement in banking regulation to impress voters.
Volcker rule - Related Articles
  • Testing Times: Global Banking Regulation


    The UK ring-fencing proposal is an attempt to separate out investment banking from commercial banking in a way that flies in the face of the universal banking model popular in continental Europe and throughout many emerging markets. The Volcker Rule under Dodd–Frank, which virtually eliminates
    By Brian Caplen

  • The Complex World of International Auditing Regulation

    Best Practice

    reports of the companies they are investing in to be fair and reliable, with auditors playing a critical role—famously categorized by Paul Volcker in 2002—as the “guardians of truth in markets”.
    By Christopher Humphrey, Anne Loft


Definitions of ’Volcker rule’ and meaning of ’Volcker rule’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’Volcker rule’ and other financial terms with our online QFINANCE Financial Dictionary.

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