A message from ESBG: applying the principle of proportionality
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16 March 2016
Banking legislation and
regulation is complex. Does it have to be? Maybe not always.
Taking a tier-based approach at every step of the rulemaking process can work and bear fruit when it comes to efficiency. Guided by proportionality, policy can pave the way for locally-focused banks which aim to finance the real economy. The payoff: EU growth and the jobs Europeans crave.
Level playing field: needed more than ever
A level playing field in
banking is needed more than ever. To get there, rules need to be tier-based,
proportionate, to reflect the diverse financial landscape. Applied at every
step of the legislative and regulatory process, proportionality can especially
help spur locally rooted banks to play an even more vital role – especially for
SMEs and households. Savings and retail banks are better off without a “one
size fits all” approach.
Local communities that savings and retail banks serve
already recognise that. They see the value of proportionality. Awareness is
growing among policymakers too.
time we further implement it?