EBF urges rethink of BSR after ECON vote does not deliver way forward

27 May 2015
by ebffbe -- last modified 27 May 2015

The European Banking Federation, taking note of Tuesday night’s vote in the European Parliament’s Economic and Monetary Affairs Committee (ECON), remains deeply concerned over the EU Banking Structural Reform proposal (BSR) that seeks to break up the largest European banks.

The outcome of the ECON vote shows that there is no clear consensus on what is right for big universal banks in Europe. The confusing vote is indicative of the uncertainty that the European banking sector faces at a moment when Europe needs to revitalise economic growth and create a genuine Capital Markets Union supported by liquid markets with banks active as market-makers.

The EBF urges policy makers to rethink their priorities as the BSR proposal could lead to a loss in European investment capacity equal to 5 percent, representing a decline of almost €100 billion in capital expenditure on the long term. Any further reform of the banking sector also needs to take into view the new, significantly different regulatory and economic environment.

The European Banking Federation is the united voice of banks established in Europe. It is a forum where best practices are exchanged, legislative proposals and initiatives are debated and common positions adopted.

European Banking Federation (EBF)