The 11 largest banks in Europe are requesting the European Union to pause the increase in capital requirements. This measure aims to facilitate economic growth and address the current uncertainty in the financial sector.
The top executives of the 11 largest European banks have urged the European Union to relax regulations to strengthen the economy and promote growth amid rising uncertainty. According to expansion.com, this request was formalised through a letter addressed to prominent EU leaders, including António Costa and Ursula von der Leyen.
In the letter, the bankers have called for a moratorium on the increase in capital requirements, noting that the loss-absorption capacity of EU banks currently stands at €2.5 trillion. They insist that the continuous rise in requirements must be halted to allow banks to allocate more resources to financing the economy rather than retaining capital.
Among the signatories are Ana Botín from Santander, George Elhedery from HSBC, and Sergio Ermotti from UBS, who emphasise that simplifying the regulatory environment should be a constant goal.
The letter also highlights the need for supervisors to consider competitiveness and growth, questioning the risk aversion that prevails in current regulation.
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