US EditionECB Proposes Simplifying Rules for Banks
- The European Central Bank proposed simplifying rules for banks to enhance international competitiveness, according to ECB Vice President Luis de Guindos.
- The proposals aim to create a simpler framework and reduce unnecessary burdens while maintaining banks' resilience.
- The ECB's key proposal includes simplifying capital requirement rules introduced after the 2008-2009 financial crisis.
- These recommendations will be considered by the European Union as part of efforts to ease regulations across various sectors.
38 Articles
38 Articles
The new goal of debureaucratisation is now also being achieved in the financial sector. ECB and national supervisory authorities are proposing more efficient and focused banking supervision. Small institutions could have less stringent rules in the future, and this could lead to a reduction in staff – in banks and supervision.
Banks would have two types of capital requirements: capital requirements that are in force at all times, and capital requirements that could be relaxed when the economic cycle weakens.
On Thursday, the European Central Bank (ECB) presented its proposals to simplify bank capital rules and avoid unnecessary burdens. The Frankfurt Institute rejected any desire to weaken the soundness of the sector.
ECB Governing Council proposes simplification of EU banking rules
On 11 December 2025, the European Central Bank (ECB) issued a press release announcing that its Governing Council has endorsed the recommendations of its High-Level Task Force on Simplifications.The recommendations include: Reducing the number of elements in the risk-weighted and leverage ratio framework. Introducing a materially simpler prudential regime for smaller banks, which expands on the existing EU regime. Introducing a European governan…
On Thursday, the European Central Bank (ECB) presented its proposals to simplify bank capital rules and avoid unnecessary burdens. The Frankfurt Institute rejected any desire to weaken the soundness of the sector.
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