What is the ECB High-Level Task Force on Simplification?
The ECB’s Governing Council created the High-Level Task Force on Simplification to develop proposals for simplifying the European prudential regulatory, supervisory and reporting framework, while still maintaining our strong banking sector in Europe.
The task force’s creation came amid ongoing global debate about the complexity of financial rules and regulation, and is consistent with the European Commission’s overall initiative on simplification.
Who is on the task force?
ECB Vice-President Luis de Guindos chairs the task force. The other members are the central bank governors of Estonia (Madis Müller), Finland (Olli Rehn), France (François Villeroy de Galhau), Germany (Joachim Nagel) and Italy (Fabio Panetta), as well as ECB representative to the Supervisory Board Sharon Donnery.
What is the task force working on?
The task force’s proposals for simplification will cover two main areas:
- the regulatory framework, including capital structure and Basel III implementation
- streamlining reporting and supervisory processes to eliminate overlaps and inefficiencies
Members agreed that the proposals should maintain the current level of financial resilience of the European banking sector, and that they must not undermine the solvency or regulatory compliance of European banks.
The task force will consult the Supervisory Board on supervisory issues and will take account of European banking supervision’s existing initiatives to increase the efficiency, effectiveness and risk-based focus of prudential supervision.
It will also coordinate with other European authorities, including the European Banking Authority and its task force on the efficiency of the regulatory and supervisory framework.
The high-level task force plans to deliver its proposals for simplification to the Governing Council by the end of 2025, following which any final proposals will be presented to the European Commission.