The role of banks on prudential policy and supervision
Banks are at the heart of the European economy, financing homes, businesses and public investment across the continent. Capital and liquidity are scarce resources, and the level of capital and liquidity ratios directly determines banks' capacity to finance the economy.
The banking sector operates under heavy regulation designed to ensure stability and customer protection, and has demonstrated resilience through major unforeseen events, reflecting the effectiveness of strengthened prudential frameworks. As regulatory requirements and market conditions evolve, prudential standards must remain proportionate and risk-based, enabling banks to maintain financial stability while meeting the real economy's financing needs.
Our objectives
- Robust and proportionate prudential standards that safeguard financial stability while enabling banks to finance the economy and support European competitiveness
- A harmonised supervisory framework across Europe that promotes convergence, reduces inefficiencies, and ensures consistent application of rules
- Effective crisis management and resolution frameworks that preserve financial stability and the continuity of critical banking services
- Data-driven analysis and evidence-based insights on macroeconomic and regulatory developments to inform policy decisions that foster stability, growth, and competitiveness
EBF calls for quick solutions to close Europe’s Investment Gap
In response to the publication of the EC report on bank competitiveness
On 17 July 2026, the EBF responded to the European Commission's bank competitiveness report, calling for an ambitious banking package that pairs structural reforms with quick, short-term action to close Europe's growing investment gap, now estimated at EUR 1.4 trillion annually. Current rules are limiting banks' capacity to finance strategic sectors such as aerospace and SME lending, and the EBF is urging EU policymakers to swiftly simplify the regulatory and prudential framework so banks can better support Europe's competitiveness.
EBF Responds to EC Consultation on the Competitiveness of the EU Banking Sector
On 19 April 2026, the EBF submitted its response to the EC Consultation on the Competitiveness of the EU Banking Sector, calling for prompt action to close Europe's competitiveness gap ahead of 2030. The response argues that increasing banks' lending capacity is essential to European growth, and identifies fragmented and overlapping capital requirements as the main obstacle. The EBF urges policymakers to reform or remove inefficient rules while preserving effective ones, and to reduce regulatory fragmentation to unlock banks' contribution to EU competitiveness.
EBF's contribution to the dialogue on prudential policy and supervision
To advance the EBF's work on prudential policy, supervision and crisis management, the Federation facilitates informed dialogue between bank experts, national banking associations, international standards setters, European regulators and supervisors. Through multi-level engagement platforms and expert groups, the EBF fosters structured dialogue with key authorities including:
- European Commission (EC) , European Parliament (EP) , and European Council
- European Banking Authority (EBA)
- European Central Bank (ECB) /Single Supervisory Mechanism (SSM)
- Single Resolution Board (SRB)
- European Financial Regulatory Advisory Group (EFRAG)
- Basel Committee on Banking Supervision (BCBS)
- Financial Stability Board (FSB)
- International Accounting Standards Boad (IASB)
- Organisation for Economic Cooperation and Development (OECD)
- International Monetary Fund (IMF)
- European Systemic Risk Board (ESRB)
Areas of Engagement
In Focus: Competitiveness
Europe's competitiveness and future prosperity are at risk without bold reform. As the EU remains a predominantly bank-based financial system, banks are the main source of external financing for households and businesses, and closing Europe's investment gap depends on their capacity to lend. The EBF calls for quick and decisive action to simplify and adjust the regulatory and prudential framework, so that banks and capital markets can increase their contribution to the European economy.
