Finance
ECB Seeks Bigger Say on Banks' Capital Requirements
Published by Global Banking & Finance Review®
Posted on April 14, 2026
2 min readLast updated: April 14, 2026
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Published by Global Banking & Finance Review®
Posted on April 14, 2026
2 min readLast updated: April 14, 2026
Add as preferred source on GoogleThe ECB has urged EU lawmakers to grant it a comprehensive role in overseeing banks’ capital requirements—including national-level buffers—to spot overlaps and gaps and bolster competitiveness.
FRANKFURT, April 14 (Reuters) - The European Central Bank urged European lawmakers on Tuesday to give it a bigger say on banks' overall capital requirements, including those set by national authorities, in a bid to identify overlaps and blind spots.
The recommendation was one of 17 submitted by the euro zone's central bank to the European Commission as part of a consultation aimed at helping EU banks compete more effectively with rivals in the U.S. and elsewhere.
The central bank argued its policymakers should take a view on the total level of capital demands facing EU banks, including those set by ECB supervisors and others that are the purview of national authorities.
"It is proposed to make the ECB Governing Council responsible for taking a holistic view of the overall level of capital demand within and across the banking union to fulfil the need for increased coordination," the ECB said in its recommendation.
The central bank said the assessment should be carried out by ECB policymakers and top supervisors together but left open how their findings should be implemented.
The ECB repeated other recommendations, such as whittling down macroprudential buffers to just two, clarifying the status of convertible bonds and expanding a favourable regulatory regime for small banks.
(Reporting by Francesco Canepa; Editing by Kate Mayberry)
The ECB seeks greater authority to identify overlaps and blind spots in capital requirements set by both ECB supervisors and national authorities.
The ECB submitted 17 recommendations, including holistic oversight of capital demands, simplifying macroprudential buffers, clarifying convertible bonds, and extending regulatory relief for small banks.
ECB policymakers and top supervisors would jointly assess the total level of capital demands for EU banks.
Macroprudential buffers are capital reserves to address financial risks. The ECB recommended reducing them to just two types for clarity and efficiency.
The aim is to increase coordination, remove regulatory overlaps, and help EU banks compete more effectively with banks in the U.S. and other regions.
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