The European Commission has today launched a call for evidence as part of a comprehensive review of the EU’s macroprudential rules for the banking sector. These rules are important because they ensure the stability of the banking system as a whole and prevent substantial disruptions in the provision of loans and other vital banking services to citizens and businesses.
The Commission is seeking views on the functioning of, and possible improvements to, existing rules, drawing lessons from the COVID-19 pandemic and other experiences. The review also aims to determine whether current rules, first adopted in 2014, are suitable to address emerging risks to financial stability such as climate change and those stemming from innovations in digital finance. It seeks to ensure that the existing legislation continues to work as intended, safeguarding financial stability without fragmenting the Single Market.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: “Macroprudential rules are an important element of the regulatory framework for banks. The current crisis raised the question whether our macroprudential tools could better encourage banks to continue lending to people and businesses during a crisis, when they need it most. Today’s call for evidence will feed into our reflections on how to make our macroprudential framework fit for the future, allowing us also to deal with new challenges linked to climate change and digital innovation in finance”.
The replies received will feed into the impact assessment for a possible legislative proposal on the EU’s macroprudential framework for banks. The call for evidence will run until 18 March 2022. You can have your say here.