BRUSSELS, Friday, 15 January 2016 – More than 40 policymakers and banking industry experts took part today in a forum that explored a new report from the Banking Stakeholder Group (BSG ) (offsite) of the European Banking Authority that addresses the principle of proportionality in banking regulation.
|||||BSG Chairman and Loughborough University Professor David T. Llewellyn presented and commented on the report findings on how proportionality can be best applied to financial sector rulemaking. He was followed by Erik Van der Plaats, Senior Expert, Policy and regulatory advice, European Commission and EBA Regulations Department Head Isabelle Vaillant. Chris De Noose, coordinator of the group's workstream, provided introductory remarks. |
Photo (Left to right): Chris De Noose, coordinator of BSG workstream with BSG Chairman and Loughborough University Professor David T. Llewellyn.
About the report
The unprecedented BSG report (offsite, .pdf) calls on EU supervisors and policymakers to better apply the Principle of Proportionality to find a balance between costs and benefits of EU financial regulation. Aimed at the European institutions and authorities as well as supervisors at both national and European levels, the 58-page report which includes several case studies showing how the principle could be applied to the fullest extent possible, also establishes a set of high-level and technical recommendations to promote the Principle of Proportionality in all aspects of regulation.
Proportionality is about balancing the costs and benefits of regulation. If regulation is disproportionate in relation to its objectives, the cost-benefit calculation will likely worsen. The high-level and technical recommendations contained in the report should be largely taken on board in order to provide an important reference for promoting the Principle of Proportionality in all aspects of regulation.
Following the considerable intensification of bank regulation since the crisis, there is a need to take stock of how regulation has evolved with particular regard to the key issues of proportionality and complexity.