ECB endorses recommendations for simplifying banking regulation and supervision

The European Central Bank (ECB) announced that its Governing Council has endorsed the High-Level Task Force (HLTF) recommendations for simplifying the European prudential regulatory, supervisory, and reporting framework.

The endorsed recommendations aim to support the 2026 European Commission report on the banking sector in the Single Market. They emphasize maintaining resilience, effectiveness, European harmonization, and international cooperation.

The recommendations include measures to simplify the regulatory framework, such as reducing the number of capital stack elements, aligning frameworks, and streamlining directives and acts.

Supervisory framework simplifications focus on increasing risk focus, strengthening the EU Single Rulebook, and harmonizing supervisory practices.

Reporting framework reforms include establishing an integrated reporting system, reducing data resubmissions, and enhancing transparency and public disclosure.

For more details, visit the official ECB press release: ECB press release.