Vujcic: Simplify Rules, Not Lower Capital Requirements for Europe's Banks

European Central Bank Vice President Boris Vujcic emphasized that European banks need simpler rules rather than laxer capital requirements. He stated that robust bank requirements are a source of strength and argued that the current level of bank capital requirements is not a competitive disadvantage for European banks.

Vujcic pointed out that despite the complex regulatory framework, Europe's banks remain profitable and sound. However, he acknowledged that the rules have become overly complex and suggested simplifying them without jeopardizing safety.

To achieve this, Vujcic proposed merging various requirements into two: a releasable and a non-releasable buffer. He also advocated for creating a simpler regime for smaller, less complex banks to ease their costs and simplify the resolution framework.