The European Council published a speech delivered at the Sixth ECB Forum on Banking Supervision in Frankfurt calling for stronger cooperation and “better regulation” to protect euro area banking resilience, while pushing for faster progress on deeper capital markets, the Savings and Investment Union and completing the Banking Union. The remarks framed the creation of ECB Banking Supervision and the Single Supervisory Mechanism as a landmark step in strengthening the banking system after the financial and sovereign debt crises, citing improved bank resilience and stress-test performance. They warned that weakening global minimum standards could fuel regulatory fragmentation, arbitrage and an uneven playing field, and stressed the need to preserve the independence of supervisors and central banks. The speech also argued for reviewing what can be improved, streamlined and simplified in regulation and supervision to support competitiveness and innovation without a shift to deregulation, while pointing to wider financing needs including the digital and green transitions and defence expenditure. The speaker called on Member States, EU institutions and regulators to act with urgency on Savings and Investment Union initiatives and the remaining elements needed to complete the Banking Union.

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