The European Banking Federation (EBF) Board published highlights of its meeting setting out priorities for a simpler, more efficient and competitive EU regulatory and supervisory framework and for the future of payments, including the digital euro. It argued that regulatory complexity and supervisory fragmentation are limiting banks’ capacity to support Europe’s growth and investment needs. To illustrate the impact of supervisory requirements, the Board cited EBF and Global Association of Risk Professionals data showing that, across a sample of 15 major European banks, additional capital driven by supervisory discretion increased by EUR 102 billion between 2021 and 2024 while the Basel baseline remained unchanged; the group represents around two-thirds of sector assets. An EBF supplemental study estimated that about 90% of EUR 112 billion in net retained earnings over the same period was absorbed by higher supervisory requirements, leaving around EUR 10 billion available for additional financing and implying more than EUR 1.5 trillion in lending capacity not reaching the economy. The Board also called for an ambitious revision of the securitisation framework, noting European issuance levels are around ten times lower than in the US. On payments, members reviewed legislative negotiations on the digital euro and the European Central Bank’s move to the next phase of the project, with discussions including an approach that would start with an offline digital euro and only introduce an online version if no pan-European sovereign retail payment solution is available. Holding limits, distribution, compensation and privacy safeguards remain under discussion; the ECB indicated that legislation adopted in 2026 could allow for a pilot in 2027 and potential first issuance in 2029.
European Banking Federation 2025-11-26
European Banking Federation Board urges faster EU regulatory and supervisory simplification and sets positions on securitisation and the digital euro
The European Banking Federation Board prioritized simplifying the EU regulatory framework and advancing the digital euro, citing complexity as a growth barrier. Data showed EUR 102 billion in additional capital requirements for major banks due to supervisory discretion, impacting lending. The Board also advocated revising the securitisation framework and discussed legislative negotiations on the digital euro, with potential issuance by 2029.