Since the Great Financial Crisis, complexity and volume of financial regulation have grown tremendously to the benefit of financial stability. But the accumulated burden of financial regulation is negatively affecting EU competitiveness.
“Seen in isolation most rules are at the time of introduction justified and sensible. But taken together the burdens of some requirements and rules do not measure up to the intended benefits. […] The existing and future regulations need to be simplified, and new rules must add real value to financial stability.” – Governor Christian Kettel Thomsen.
Simplification is widely discussed across the EU and was a prominent topic at both the Eurofi event and the informal ECOFIN in Copenhagen. Governor Kettel Thomsen highlighted that simplification should not be deregulation and the core pillars of financial regulation - capital requirements, liquidity requirements and resolution framework – should remain materially prudent and ambitious to enable meaningful simplification.
In his speech Governor Christian Kettel Thomsen pointed to three needs to create simpler regulation – “We need to pace, to coordinate and above all to compromise to create simpler regulation.”
Most recent presentations and speeches