The European Council published a speech delivered at the Sixth European Central Bank Forum on Banking Supervision in Frankfurt that argues the euro area should safeguard banking-sector resilience while advancing closer financial integration. The remarks call for faster progress on deeper and more competitive capital markets, swift implementation of the Savings and Investment Union initiatives, and completion of the Banking Union. The speech links post-crisis reforms, including the creation of European Central Bank Banking Supervision and the Single Supervisory Mechanism, to improved bank resilience and the objective of breaking the bank-sovereign nexus. It warns that weakening international cooperation could drive regulatory fragmentation and arbitrage, and it stresses the importance of supervisory independence, transparency on regulatory decisions, and ensuring banks and the private sector are part of crisis responses. While rejecting a “race to the bottom” on regulation, it argues for better regulation through simplification and streamlining, and urges action on recommendations referenced from reports by Enrico Letta and Mario Draghi.
European Council 2025-11-14
European Council calls for completing the Banking Union and accelerating Savings and Investment Union initiatives in ECB supervision forum speech
At the Sixth European Central Bank Forum on Banking Supervision, the European Council stressed enhancing euro area banking resilience and financial integration. The speech emphasized deeper capital markets, the Savings and Investment Union, and completing the Banking Union, while warning against regulatory fragmentation and advocating for supervisory independence and transparency. It also called for regulatory simplification and action on recommendations from Enrico Letta and Mario Draghi.