ECB Proposes Simpler Bank Regulation but Rejects Calls for Lower Capital Buffers

The European Central Bank unveiled a comprehensive proposal Thursday to simplify post-financial crisis banking regulation, seeking to prune a complex rulebook without easing overall capital requirements. The move comes as banks across Europe complain about onerous supervision and the United StatesUS pushes to cut regulation and soften capital rules.

The ECB's approach represents a careful balancing act: reducing regulatory complexity while maintaining the capital resilience that has strengthened European banks since the 2008 crisis. "Simplification efforts should maintain banks' resilience and by banks' resilience, we mean the level of capital," ECB Vice President Luis de Guindosluis de guindos said. "We do not want to try to undermine the present situation of capital of the European banks."