Brussels has signalled a retreat from plans to force Europe’s lenders to build barriers around their entire securities trading operations, as policy makers focus on stimulating growth.

Michel Barnier, the European commissioner in charge of regulatory reform of the region’s banks, told the Financial Times that any implementation of last year’s Liikanen report on the structure of European banks would have to “preserve their diversity” and avoid “penalising” lenders that were supporting the economy.

European officials are working on a “precise impact analysis” of the Liikanen report, commissioned by the EU from experts led by Finnish central banker Erkki Liikanen. Mr Barnier promised to set out his “choices and priorities” by the summer after considering “all options” for structural reform.