Mihály Varga, governor of the National Bank of Hungary, told the central bank’s Financial Stability Conference that strong, predictable regulation and financial stability are prerequisites for European competitiveness and economic growth. He called for simpler rules, less duplication and a more unified European regulatory framework, while retaining scope for justified national differences. Varga said digitalization and artificial intelligence could improve efficiency, fraud detection and customer experience but also create risks. Europe’s shortage of infrastructure and expertise for advanced AI models increases the EU banking sector’s external dependence and vulnerability, requiring a financial system that can remain technologically advanced while preserving resilience.