24th November 2014

EU Structural Reform: Better Regulation

The BBA and the Fédération Bancaire Française (FBF) have written to First Vice-President Timmermans to call for a fresh look at the European Commission’s proposals on the structural reform of banks. The BBA and FBF feel that, given the fact that the Global Systemically Important Banks (GSIBs), are now safer than before the financial crisis, the Commission’s proposal is not necessary. Adopting the proposal in its current form could have a negative impact in financing European countries, which is counter to the EU’s efforts to restore growth and improve employment. The aim of the proposal, to strengthen financial stability and improve efficiency and consumer protection, is already addressed by national legislation in the UK and France. Finally, the data used to draft the Commission’s impact assessment dates from 2010, and consequently does not correspond to the current situation of European banks. The BBA and the FBF hope that, given the reasons outlined, the Commission will consider whether the case for structural reform has been proven.

The BBA’s Paul Chisnall sets out why the case for reform should be re-examined under the EU’s Better Regulation regime here.

Please register or login to add this to your interests.