Boris Vujčić, Vice-President of the European Central Bank, spoke at the tenth annual conference of the European Systemic Risk Board (ESRB) marking the 15th anniversary of the institution.
He recalled that the ESRB was established in response to the global financial crisis, with the mission to oversee systemic risks at the European level, going beyond the supervision of individual institutions.
Vujčić highlighted that regulatory reforms implemented over the past 15 years have strengthened the resilience of European banks, thereby reducing the economic costs of financial crises. However, he also acknowledged that these rules have become complex and burdensome to apply.
He therefore advocated for a simplification of the European regulatory framework, believing that the same resilience could be achieved with simpler rules, which would enhance banks’ competitiveness while ensuring financial stability.
This statement comes amid criticism from some banking stakeholders who consider European regulation too restrictive and a hindrance to financing the real economy.
