EU Treads Carefully on ECB Mandate in Banking Reform

The European Central Bank's (ECB) mandate may not include competitiveness according to Paula Conthe, Secretary General of the Treasury and International Financing. In a speech at the Spanish Institute of Banking and Finance symposium, Conthe expressed support for regulatory simplification demanded by the banking sector.

Conthe stated that the challenge lies in articulating an 'agile' legislative proposal that clearly defines the boundary between advancing and overstepping. She called on all parties to have a broad perspective. The European Union has promoted a consultation with over 200 contributions and aims to present a regulatory initiative by the first quarter of 2027.

Alejandra Kindelán, president of the Spanish Banking Association, emphasized that regulatory simplification is not about lowering solvency standards, but rather creating a more stable and predictable framework. Conthe acknowledged that the sector's requests do not pose a dilemma between competitiveness and solvency.