Resilience and competitiveness for a diverse EU single market

Speech by EBA Chair François-Louis Michaud at the Finanzmarktklausur in Berlin (12 November 2026), in German. He argues that resilience and competitiveness are not at odds and reviews the EBA's simplification agenda: simpler capital, a more focused SREP, less reporting and more proportionality for small banks, ahead of the 'financial omnibus' the Commission plans to present in the first quarter of 2027.

Key points

• Sound European banking: CET1 above 16% (13% ten years ago), a buffer of about 430 bp over requirements, LCR 158.5%, NSFR 125.7%, ROE close to 11%, cost-to-income ratio around 50% and NPL ratio of 1.6%; lending to households and firms growing by 6%.
• Four challenges: financing needs of EUR 1,200 to 1,300 billion a year over the next decade (defence, energy transition, digitalisation, demographics), a fragmented single market, shifting risks (wars, trade conflicts, high valuations in AI financing) and cyber risk, banks' top concern.
• The EBA has published 21 reform recommendations; it proposes a clearer split between Pillar 1 and Pillar 2, restoring the leverage ratio as a backstop, merging the countercyclical and systemic risk buffers into one releasable buffer and aligning MREL with TLAC, without lowering total capital.
• The revised SREP guidelines apply from 1 January 2027; a consultation is under way to cut reporting data points by 50%, phased in from September 2027, alongside a public register of data requests.
• The EBA is suspending 15% of its level 2 and level 3 mandates, is considering widening the category of small and non-complex institutions (SNCIs) and is preparing a simplified EU stress test in 2027; it already oversees 19 critical ICT third-party providers.

Who is affected

EU banks (especially small and non-complex institutions), national supervisors, the European Commission and legislators.

Deadlines

Revised SREP guidelines applicable from 1 January 2027; reporting reduction phased in from September 2027; Commission financial omnibus expected in the first quarter of 2027; simplified stress test in 2027.

Plain-language version

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