Résilience et compétitivité : une obscure clarté ? (Resilience and competitiveness: an obscure clarity?)
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Speech by EBA Chair François-Louis Michaud at the ACPR annual conference (Paris, 5 November 2026). He argues that resilience and competitiveness are not at odds: European banks are in very good shape, but the single banking market remains fragmented and simplification is needed without lowering capital.
Key points
- Figures cited: common equity ratio above 16% (13% ten years ago), ROE close to 11% (less than 7% ten years ago) and non-performing loans at 1.6% (around 5% previously).
- Europe's financing needs estimated at €1.2tn to €1.3tn a year over the next decade; European banks' share among the world's 50 largest has fallen from 35% to 20% in fifteen years.
- Comprehensive review of the EBA framework: 10 of 21 recommendations already finalised; they will feed into the legislative proposals expected in the first quarter of 2027.
- Three initiatives: simplify capital requirements (clarify Pillar 1 and Pillar 2, a single releasable buffer merging the countercyclical and systemic risk buffers, align MREL with TLAC); new SREP Guidelines applicable from 1 January 2027; a 50% reduction in reporting data.
- Also: deprioritising around a fifth of mandates, a simplified stress test in 2027 and support for banking market integration (not only cross-border mergers).
Who is affected
EU banks, supervisors and legislators; a signal of the EBA's simplification agenda.
Deadlines
Commission legislative proposals expected in the first quarter of 2027; SREP Guidelines from 1 January 2027.
Plain-language version
François-Louis Michaud, chair of the EBA (the EU authority that sets the rules for banks), argued in Paris that banks can be both safe and competitive. He noted they are far stronger than ten years ago (only 1.6% of loans go unpaid, versus about 5% before), but Europe is still split into national markets. He wants simpler rules without cutting the capital that keeps banks safe.
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