Post by European Central Bank

Our Governing Council has called on national macroprudential authorities to maintain the current resilience of the banking system.   Risks to euro area financial stability remain elevated amid geopolitical tensions and uncertainty. While capitalisation and profitability are favourable, national authorities should generally maintain existing capital buffer requirements in case conditions deteriorate.   In this environment, it is more important than ever to establish a truly integrated European banking market, which is a prerequisite for achieving the long-term economic objectives of the EU.   Fragmentation acts as a brake on banks scaling up and competing both within and outside the EU. Policy reforms should therefore address undue complexity by simplifying the regulatory framework without reducing bank resilience. Want to learn more? Read the Governing Council’s full statement 👉 https://lnkd.in/eiq5Dzi3