The banking associations AEB and CECA are calling for regulatory simplification in the banking sector to enable progress in investment and corporate competitiveness. This was the message delivered at the event “Enabling environments for the development of resilient infrastructure: B20 – Business at OECD – ICC policy recommendations to mobilize private finance,” held as part of the 4th International Conference on Financing for Development in Seville.
Specifically, they highlight the need for a consistent and standardized international regulatory framework to avoid fragmentation and unlock private sector financing for resilient infrastructure.
To this end, in line with the recommendations of the Business at OECD (BIAC) advisory group included in the document Business Priorities for the OECD Finance agenda, they call for a common, stable international regulatory environment based on the risks facing the financial system, balancing proportionality and effectiveness.
AEB and CECA maintain that this is essential for the banking sector to effectively play its proactive role in financing sustainable and long-term economic growth. Similarly, and in line with Business at OECD (BIAC) recommendations to the OECD, they point out that the temporary introduction of extraordinary taxes on banking sector profits can have unintended consequences for financial stability, as also highlighted by the European Central Bank (ECB) and the International Monetary Fund (IMF), due to their negative impact on the capacity to provide financing to households, businesses, and SMEs, and on the resilience of entities to potential economic shocks.
Furthermore, they warn of the effects of regulatory and fiscal asymmetries produced by these ad hoc taxes on the economy as a whole, due to the lack of legal certainty and its consequences for foreign investment.
