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The Future of EU Regulation

The Future of EU Regulation

by Starling Insights

Starling Insights Editorial Board

Nov 08, 2024

Observations

Maria Luís Albuquerque, EU Commissioner-designate for Financial Services, has signaled a firm commitment to defending global banking standards, as reported by Euractiv.

Unlike some of her potential colleagues who advocate for reconsidering regulation to boost competitiveness, Albuquerque emphasized the need to implement, not roll back, the Basel III framework. Highlighting the importance of uniformity, she stressed that the EU plans to apply the Basel III reforms to all 4,500 banks operating in the region, rather than just the internationally significant ones.

In a recent statement, Consumer advocacy group Finance Watch echoed these sentiments, criticizing the EU Parliament for extending its scrutiny period on critical Basel III elements. "There is no relationship whatsoever between the competitiveness of the European economy and the implementation of rules aiming at protecting society from the risks taken by banks," argued Thierry Philipponnat, Finance Watch's chief economist.

Albuquerque also aims to advance EU banking union rules, including Crisis Management and Deposit Insurance (CMDI) and a shared EU Deposit Insurance Scheme (EDIS). "Deposit protection needs to be robust so that businesses and entrepreneurs can develop their projects and grow our economy," she said. Additionally, she intends to focus on "shadow banking," pushing for coordinated action in the G20 and G7 to "avoid regulatory arbitrage."

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