(June 26): The European Central Bank (ECB) will discontinue about 40 of its regulatory guides to lenders, part of efforts to reduce the burden of its oversight of the industry.
The ECB reviewed more than 130 such documents “to make them more concise and user-friendly,” Frank Elderson, a member of the ECB’s executive board, wrote in a blog post on Friday. Those discontinued were outdated, superseded or no longer relevant and others have been revised, he wrote.
European authorities are seeking to trim a sprawling list of demands made on banks in the wake of the financial crisis to make regulation more efficient, while not giving up hard-won resilience. The region’s banks say the work doesn’t go far enough as the US is going further by removing and lowering requirements.
Among the updates, the ECB will clarify that the so-called management buffer isn’t an additional capital requirement, but rather reflects banks’ own forward‑looking planning, Elderson said.
“Some guides warrant more in-depth revisions to fully reflect forthcoming legislative developments and feedback received from stakeholders, including the banking industry,” he wrote.
That includes guides about on-site inspections and leveraged finance, two notable areas of contention with banks. The reviews are expected to be concluded by the end of this year, according to Elderson.
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