OeNB Chief Kocher: Avoid Flood of Regulations for Banks

In view of the high complexity of European banking regulations, ECB Council member Martin Kocher believes there is room for simplification. Due to changes in banking, it is important to avoid too many new regulations, said the head of the Austrian National Bank (OeNB) at the World Bank meeting. "There are many things that can be simplified in reporting requirements," he added.

Regulatory Authorities Under Pressure

The regulatory authorities are under constant pressure to issue new rules due to the emergence and growth of new asset classes. Therefore, in addition to simplifying existing rules, they must also resist the temptation to introduce further regulations.

ECB Considers Simplified Regulation

The European Central Bank (ECB) is considering reducing the capital buffers of banks and simplifying regulation for smaller financial institutions. This was recently indicated by ECB Vice President Luis de Guindos. The Deutsche Bundesbank has long advocated for a simplification of the regulations for the capital requirements of financial institutions. According to Bundesbank President Joachim Nagel, the multitude of capital requirements makes it difficult for banks, supervisors, and market participants to always recognize which requirement currently applies. Additionally, there are numerous side effects and interactions that could undermine the actual goals of the regulations.

(APA/Red)

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