Statement by the EBA Chair François-Louis Michaud at the ordinary meeting of the Committee on Economic and Monetary Affairs (ECON) of the European Parliament
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Written statement by EBA Chair François-Louis Michaud at his first hearing before the European Parliament's ECON committee. He highlights the strength of EU banks, warns of their loss of global weight and the fragmentation of retail banking, and backs the Commission's competitiveness agenda.
Key points
- CET1 above 16% and ROE close to 11%; third-country banks hold more than 10% of EU banking assets.
- 10 of 21 efficiency recommendations delivered and a proposal to cut up to 50% of reporting.
- More than 220 counterparties onboarded for central validation of ISDA SIMM under EMIR 3; first decision expected by year-end.
Who is affected
European banks, counterparties to uncleared derivatives and EU co-legislators.
Deadlines
First ISDA SIMM validation decision by end-2026; ongoing monitoring from 2027.
Plain-language version
The chair of the EBA, the EU authority that sets the rules for banks, appeared for the first time before the European Parliament's economic affairs committee. He said EU banks are solid (capital cushion above 16% and profitability close to 11%), but are losing global weight and retail banking is still split along national lines.
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Summary produced with artificial intelligence from the official publication. It may contain errors: always check the original document.
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