EBF LETTER

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EBF urges European Commission to simplify banking regulatory framework in new letter

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Brussels, 19 January 2026 – The European Banking Federation (EBF) has submitted a letter to the President of the European Commission, Ursula von der Leyen, Executive Vice‑President Séjourné, Commissioner Dombrovskis, and Commissioner Albuquerque, stressing the urgent need to simplify the EU banking regulatory framework.

The letter underscores the need for regulatory simplification in the European financial sector to strengthen the EU’s economic competitiveness, strategic autonomy, and long‑term prosperity. The EBF highlights Europe’s challenging geopolitical and economic environment and emphasises that the banking sector plays a critical role in financing strategic priorities such as innovation, sustainability, defence, and digital transformation. However, the current regulatory and supervisory framework has become overly complex, fragmented, and burdensome. This complexity, driven by gold‑plating, supervisory discretions, and overlapping requirements, is limiting banks’ ability to support economic growth and remain globally competitive.

The letter further warns that excessive capital requirements and administrative burdens divert resources away from productive investment, placing European banks at a disadvantage compared with their US and UK counterparts. To address these concerns, the EBF sets out a series of priorities aimed at simplifying and streamlining regulation, including reforms to capital requirements, macroprudential tools, and digital regulatory frameworks. These proposals aim to strengthen the banking sector’s capacity to finance the European economy while safeguarding financial stability.

The EBF calls on the European Commission to act swiftly and in close cooperation with stakeholders to implement these reforms, stressing that a more efficient regulatory environment is essential for Europe’s future competitiveness and strategic sovereignty.

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For more information:

Sébastien de Brouwer, Deputy CEO – S.debrouwer@ebf.eu

Gonzalo Gasos, Senior Director Prudential Policy and Supervision – G.gasos@ebf.eu

About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.