Regulatory simplification has become a key objective at the European level. Institutions such as the European Commission, the European Central Bank, the Single Supervisory Mechanism, the European Banking Authority, and national central banks are developing reflections on how to improve the regulatory framework for the banking sector. In this regard, the Governor of the Bank of Spain, together with his European counterparts, has signed a letter calling for significant progress in this direction.
The banking sector has already submitted a document with 24 proposals addressed to competent institutions and bodies. These recommendations include the rationalization of the prudential framework, the elimination of overlaps, and the review of buffers that do not appear in international standards or whose use is excessive.
Regarding supervision, the need to respond to new risks, increase efficiency, and reduce reliance on discretionary use of capital is raised. Likewise, the importance of ensuring that supervisory interpretation is aligned with legislative intent is emphasized.
It is time to assess whether certain rules that add complexity are truly necessary. These include reporting obligations—already partially addressed in the omnibus directives—retail investor regulations, RIS, FIDA in relation to access to financial data, or GAR regarding sustainability.
Currently, Europe suffers from regulatory accumulation that limits the capacity of European banks to finance households and businesses, and the trillion-euro investments that Europe must undertake to strengthen open strategic autonomy.
Here you can access the proposals document.
