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
The chair of the EBA, the EU authority that sets the rules for banks, spoke in Vienna with a sense of urgency: geopolitical tensions, cyber threats and European banks shrinking on the world stage (35% of the 50 biggest in 2011, just over 20% today). Still, banks are solid, with a capital cushion above 16%, and the EBA promises simpler rules without losing safety.
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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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