ECB Board Member Calls for Banking Sector Integration and Proportionality
Frank Elderson advocates for completing the European banking union while refining supervisory rules to boost competitiveness without compromising financial stability.
By Orion Desk
Frank Elderson, member of the ECB's Executive Board, argued that fragmentation remains the primary barrier to European banking competitiveness. He emphasized that establishing a single market, including a unified deposit insurance scheme, is essential to enable cross-border activity and allow institutions to achieve necessary economies of scale.
Regarding regulation, Elderson supported increasing the asset threshold for small and non-complex banks from 5 billion to 10 billion euros to allow for lighter reporting requirements. He stressed, however, that any simplification must remain strictly aligned with individual risk profiles to ensure that core prudential standards and financial system resilience are maintained.
Originally published by European Central Bank
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