A sense of urgency, commitment and hope for Europe's banking sector
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Speech by EBA Chair François-Louis Michaud at the 17th FMA Supervisory Conference (Vienna). He combines a sense of urgency about geopolitical risks, European banks' loss of scale and cyber threats with the EBA's commitment to simplify the prudential framework without losing resilience.
Key points
- CET1 above 16%, about 430 bp of headroom over requirements and ROE close to 11%.
- EU banks' share among the world's top 50 has fallen from 35% in 2011 to just above 20%.
- 10 of the 21 efficiency recommendations delivered; 15% of mandates deprioritised and up to 50% cut in reporting.
- The EBA is lead overseer of 19 critical ICT providers under DORA.
Who is affected
European banks, national supervisors and EU legislators.
Plain-language version
In Vienna, the chair of the EBA, the EU authority that sets the rules for banks, explained how it plans to simplify: 10 of 21 efficiency recommendations are done, 15% of its tasks have been put on hold, and it wants to cut banks' reporting by up to half. The EBA also directly oversees 19 critical tech suppliers the sector relies on, under the DORA law.
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