BRUSSELS, 24 September 2015 – WSBI-ESBG Managing Director Chris De Noose spoke today at the Annual Conference for Chairmen and CEOs of the Sparbankernas Riksförbund – the Independent Swedish Savings Banks Association – in Stockholm on 24 September.
De Noose shared his views on developments in Europe around proportionality and the state of regulators and supervisors inclined to support this principle.
About the proportionality principle
The proportionality principle strives to avoid one-size-fits-all legislation, stressing that balanced legislation adusted to the size, complexity, business model, and cross-border activity of financial institutions should be ensured. Only in this way can an enforcement of disproportionate obligations on banks be avoided.
Mr De Noose stressed : "Obligations that lack proportionality could severely hamper the ability of banks with a low-risk, regional and responsible business model in playing their important role as stabilising factors in the financial system and as a source of finance for the real economy."
Due to the importance of this topic across the European banking and financial industry, De Noose is currently leading a project with a team from the Banking Stakeholder Group (BSG) of the European Banking Authority (EBA) on this issue, in parallel with thoughts which members are exchanging within ESBG.
The Ad Hoc Working Group on Proportionality was formed at the BSG's own initiative during its March 2014 meeting. It was formed because the group believes that the proportionality principle is neither properly defined nor properly applied by the regulators, standard setters or the supervisors. The group's aim is to establish a workstream and proposals which may be supported by the European institutions and the European authorities, in particular the EBA.