Published by Global Banking & Finance Review

Posted on November 6, 2026

· Last updated: November 6, 2026

ECB: Proposed EU Banking Rule Changes Must Not Weaken Financial Resilience

ECB and SRB Leaders Advise on EU Banking Regulation Reforms

FRANKFURT, Nov 6 (Reuters) - European Central Bank supervisory chief Claudia Buch and Single Resolution Board Chair Dominique Laboureix outlined their recommendations for EU legislators contemplating reforms to prop up banking competitiveness.

The recommendations, published in a blog post in response to an EU Commission plan to rewrite some banking regulation, include both changes to the existing framework and pleas to maintain certain parts of the existing rulebook.

Key Recommendations for Strengthening the EU Banking Framework

• Establish a common European framework for deposit insurance as the still missing third pillar of the banking union.

• Enable the better flow of capital and liquidity within banking groups. Allowing banks to allocate resources more freely within their groups would improve efficiency in normal times and help them to buffer adverse shocks in a more flexible way.

• Strengthen the framework for liquidity in resolution. Credible arrangements to provide liquidity during and immediately after resolution would give authorities and markets greater confidence that a viable bank can continue operating.

Maintaining Resilience and International Standards

• Simplification cannot come at the expense of resilience. The framework has been built on the experience of past crises, and that experience still matters.

• Simplification should not mean moving away from internationally agreed standards.

• Simpler rules should not blur institutional responsibilities. Supervisors and macroprudential and resolution authorities have complementary but distinct mandates.

(Reporting by Balazs Koranyi, Editing by William Maclean)

Key Takeaways

  • Push for a European Deposit Insurance Scheme to complete the banking union’s third pillar and strengthen depositor protection across the EU. (finance.ec.europa.eu)
  • Advocate freer movement of capital and liquidity within banking groups to improve efficiency and shock‑absorption, addressing over €230 billion trapped due to fragmentation. (2eu.brussels)
  • Call for stronger resolution liquidity frameworks and simplification of rules that do not compromise resilience or deviate from global standards like TLAC, while ensuring clarity in institutional mandates. (bis.org)

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