Apr 16 2024: European banks are urging the European Union to designate them as a critically important “strategic” sector, highlighting concerns about competitiveness and the future of the bloc, according to a report released on Tuesday.
The European Banking Federation (EBF) is spearheading this call, presenting 45 policy recommendations ahead of the upcoming European elections in June. Christian Sewing, the president of EBF and CEO of Deutsche Bank, emphasized the strategic significance of banks for European sovereignty.
The EBF’s report underscores the need to recognize banks as vital players in Europe’s transformation, marking the first official request for such a designation at the European level.
While the European Union does not currently have a published list of strategic sectors, Wim Mijs, CEO of EBF, highlighted the need to reevaluate Europe’s strategic sectors, considering past reliance on external sources for defense, energy, and manufacturing.
The report primarily focuses on regulatory challenges, advocating for a streamlined regulatory framework. While acknowledging the post-financial crisis regulations’ role in stabilizing the industry, the report criticizes the current regulatory environment as excessive and burdensome.
The EBF calls for a comprehensive review of existing regulations, not only focusing on stability but also assessing their impact on competitiveness and growth. This push reflects longstanding concerns in the banking sector about over-regulation, although European officials like European Central Bank President Christine Lagarde emphasize the importance of maintaining regulatory standards.
The EBF’s stance underscores the delicate balance needed in regulatory frameworks to ensure stability without stifling competitiveness and innovation in the banking sector.