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As part of their discussions on issues impacting banks, customers and the real economy, EBF Board members extensively discussed the Banking Union proposals. Members fully support the decision to empower the European Central Bank to supervise all banks in the euro area as part of a new single supervisory mechanism, and encourage Europe’s policymakers to clarify the next steps that will be necessary to build a strong, integrated supervisory capacity across Europe. The single rulebook and a level playing field are key in the implementation, which builds on a harmonised capital and liquidity regime and bank recovery and resolution framework.
The EBF Board also agree with most of the challenges identified in the Liikanen Report but express their concern at the possible mandatory separation of banks’ activities, which they believe endangers the universal banking model and would have a negative impact on the economy, especially the financing of companies, due to the reduction of financial markets activities.
Europe’s banks support a robust resolution regime, including an adequate bail-in framework. Reviewing the recommendations of the Liikanen High Level Expert Group, banks stress the necessity of a proper impact assessment to analyse the cumulative cost of regulatory proposals on the economy.