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Europe's banking sector is still struggling with the legacy of the financial crisis. Regulatory reform has made sure that this is done in line with clear, strong rules.
“But: In 20 years, do we want Europe's economy to be served by 50 banks - all of them much too big to fail - and not interested in financing rural development? Or do we want a robust sector with several thousand institutions - with very different business models, serving the different needs of different customers? This future banking sector is what I imagine for a robust European economy - it is agile and it is resilient!
I am deeply convinced that it is worth to change regulations toward this end.” he says.
There is a need to strike a better balance between setting standards for internationally active banks and allowing for different business models of the thousands of small and medium-sized banks in Europe.
Clearly, this can be done at European level. That's why there is a need to move forward with proportionality within the current review process of CRR and CRD IV. But we must also push for a more fundamental solution.
Therefore, he was calling on the Commission Expert Group on Banking, Payment and Insurance to give priority to the work on proportionality - the Small Banking Box is the most effective and efficient strategy to enhance proportionality.