The European Banking Federation (EBF) has sent a letter to European Commission leaders calling for urgent simplification of the EU banking regulatory and supervisory framework, arguing that rising complexity is constraining banks’ ability to support the European economy. The letter, addressed to President Ursula von der Leyen, Executive Vice-President Séjourné, and Commissioners Dombrovskis and Albuquerque, describes the framework as overly complex, fragmented and burdensome, citing gold-plating, supervisory discretions and overlapping requirements. It warns that excessive capital requirements and administrative burdens divert resources from productive investment and put European banks at a disadvantage relative to US and UK peers, and sets out priorities to streamline areas including capital requirements, macroprudential tools and digital regulatory frameworks while safeguarding financial stability. The EBF calls for swift action by the European Commission in close cooperation with stakeholders to implement the reforms.
European Banking Federation 2026-01-19
European Banking Federation urges the European Commission to simplify the EU banking regulatory framework
The European Banking Federation has urged the European Commission to simplify the EU banking regulatory and supervisory framework, citing its complexity as a constraint on banks' economic support capabilities. The EBF highlights excessive capital requirements and administrative burdens as disadvantages compared to US and UK banks, and calls for streamlined reforms in capital requirements, macroprudential tools, and digital regulatory frameworks.