ECB Vice-Chair discusses financial supervision, simplification, and European integration

Frank Elderson, Member of the Executive Board of the European Central Bank (ECB) and Vice-Chair of the Supervisory Board, discussed the role of financial supervision, regulation, and European integration in an interview published in Het Financieele Dagblad on June 3, 2026.

The interview references the 2022 collapse of Amsterdam Trade Bank as an example of the importance of monitoring non-financial risks, which can predict future financial problems. Elderson emphasized that deregulation is not advisable, especially if it results in lower capital requirements, as well-capitalized banks do not constrain lending.

He highlighted that current capital requirements do not limit lending, noting that requirements have remained stable since the 2008 financial crisis, with temporary easing during the pandemic. The ECB aims to ensure banks are resilient to support the economy in both good and bad times.

Elderson discussed the need for greater European financial integration, including a genuine single market, deposit insurance scheme, and capital markets union. He criticized political resistance to cross-border mergers, which hinder scalability and competitiveness.

The ECB’s approach to simplification involves streamlining supervisory processes, reducing the frequency of risk assessments where appropriate, and consolidating supervisory publications. For example, the approval process for securitisations has been shortened from three months to seven days, provided criteria are met.

He acknowledged that cultural change is ongoing, involving collaboration with national supervisors like De Nederlandsche Bank (DNB), and emphasized the importance of clear communication that supervisory expectations are not legally binding. Elderson also noted the European Commission’s proposal to raise the reporting threshold for companies’ sustainability performance from 250 to 1,000 employees.