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Proportionality principle needed when crafting better regulation

Rules should be simplified, less complex and easy to implement, creating level playing field for all actors providing same financial and banking services.


>> See the BSG report on proportionality

>> See ESBG's position on better regulation and proportionality

>> Read the ESBG 'Call for Evidence' response





​​​BRUSSELS, 8 March 2016 – Regulation should be simplified, less complex and easy to implement, creating a level playing field for all the actors providing the same financial and banking services and products, according to ESBG – the European Savings and Retail Banking Group. The Brussels-based trade association says that there is clear need for the principle of proportionality to be recognized and applied at every step of the legislative and regulatory process so that existing and new legislation and regulation are applied to banks in a proportionate way.

ESBG Managing Director Chris De Noose said the “one size fits all” approach does not work and harms the vital role of locally rooted Banks as suppliers of funds to MSMEs. A level playing field and proportionate regulation is needed to allow savings and retail banks continue to play their important role in providing financial access in a suitable manner to broad segments of the population and in financing the real economy. 

The association notes that disproportionate regulation could inhibit small banks from providing finance to the real economy to support innovation and growth. Regulation should help us to achieve the mission. This mission is to achieve close, interactive relationships with our customers and provide financing and financial services to the real economy – most notably SMEs.

​"The European Commission's Better Regulation initiative is clearly needed," De Noose added. "We have responded to the Commission's 'Call for evidence' consultation, harvesting arguments and clear evidence around the unintended consequences and inconsistencies between legislations."


>> See the BSG report on proportionality

>> See ESBG's position on better regulation and proportionality

>> Read the ESBG 'Call for Evidence' response


Proportionality; Regulation; Supervision; European Supervisory Authorities (EBA-ESMA); European Institutions; Capital Markets; SME finance