EBF PRESS RELEASE

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Simply Competitive: banks urge EU to cut complexity and support competitiveness & growth

Brussels, 18 July 2025 – The European Banking Federation (EBF) calls on EU policymakers to make simplification a core strategic priority also in financial services. In a new report released today, Europe’s banking sector warns that regulatory complexity is undermining the EU’s competitiveness and slowing the financial sector’s ability to support households, companies and key investments urgently needed by Europe.

The European Commission has made a strong initial commitment to reducing burdens by placing simplification at the top of its 2025 agenda, a welcome first step in the right direction. However, this commitment still needs to be translated into a serious simplification effort when it comes to the EU’s regulatory and supervisory framework for financial services. Indeed, the current layered and fragmented set of rules and guidance adds complexity, increases burdens, creates confusion, and ultimately hinders investment. Europe urgently needs to scale up financing for green innovation, industrial competitiveness, strategic resilience, security and defense but the burden of overregulation has become too heavy to be ignored. The report outlines simplification recommendations in seven areas that would deliver a faster and more meaningful impact.

“Europe cannot afford to tie its economy in regulatory knots. We are reaching the limits of what the banking sector is empowered to deliver under the current weight of complexity. Our sector remains fully committed to being a solid partner in unlocking the investments Europe urgently needs. Today’s report calls for smarter rules, clearer responsibilities, and fewer roadblocks to growth,” said Wim Mijs, CEO of the EBF.

From prudential, tax, and reporting requirements to sustainability and digital rules, European banks face an increasingly complex web of overlapping and inconsistent obligations. This complexity limits the sector’s ability to support the economy. Simplification is essential to unlock Europe’s potential. Clear and proportionate regulation enables banks to better finance households, entrepreneurs, and companies investing in the green and digital transitions — ultimately supporting a more dynamic and resilient European economy.

Smarter rules mean faster investment, stronger innovation, and broader access to credit. The EBF urges EU leaders to make simplification a political priority. A more coherent regulatory framework will empower banks to do more for people, businesses, and Europe’s future.

For more information:

Sébastien de Brouwer, Deputy CEO, s.debrouwer@ebf.eu

Gabriel Daia, Head of Communications & Public Affairs, g.daia@ebf.eu

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation 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.