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European Financial Services Round Table

Thursday, June 30, 2016
EFR paper on the Global Regulatory Reform Agenda
The European Financial Services Round Table (EFR) has issued a paper on the Global Regulatory Reform Agenda, stating that a period of regulatory stability is desirable.

The EFR paper points at the fact that in the past years financial stability has been considerably enhanced through extensive revisions to the regulatory framework for banks and insurers. As a result, levels of capital and liquidity have significantly increased and the inter-connectedness between the institutions has been reduced. It is of great concern that global standard setters in the banking and insurance area continue to work on further reforms without due consideration of the cumulative impact on economic activity. There must be a shift towards growth-supporting measures and not towards non-risk sensitive regulations. Preserving a risk sensitive approach is fundamental if Europe is to meet the challenge of financing its economy and financial stability.

Therefore, the EFR recommends to reflect upon the measures put in place since the financial crisis, and to ensure that these have been properly implemented. Further revisions to the Basel III Framework should be carefully considered and the European Union should assess the impact on the European economy before legislating further. Above all, global Standards must be implemented without endangering economic recovery.

The EFR asks furthermore specific attention to ensure that consistency with politically agreed European frameworks should be safeguarded. Europe should strongly promote and defend its economic and financial interests by speaking with one voice in international fora.