In a keynote speech, European Central Bank Banking Supervision Chair Claudia Buch called for comprehensive, independent evaluation of banking regulation and supervision as a foundation for accountability. She urged assessments to consider effects on bank resilience, growth, integration and competitiveness, while warning that perceived short-term benefits from weaker standards could create greater long-term risks. Such scrutiny should involve not only banks but also academics, depositors, firms, taxpayers and civil society. Buch cited evaluations finding that post-crisis reforms strengthened resilience and reduced systemic risk without materially impairing aggregate lending or growth. Evidence indicates that well-capitalized banks maintain lending more effectively in downturns, while permanent reductions in capital requirements do not necessarily increase credit. She also noted that ECB Banking Supervision is using a revised, more risk-based methodology for Pillar 2 capital requirements in 2026, with benchmarking to promote consistency while preserving judgment based on each bank’s risk profile. To support stronger policy evaluation, Buch advocated expanded research repositories, analytical frameworks and legally sound access to granular banking data, including through artificial intelligence. She highlighted the ECB’s pilot access for external researchers and the European Banking Authority’s Pillar 3 data hub, while calling for more recent research and broader analysis of bank performance and funding costs.

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