The most recent reforms, which implement major aspects of the Basel III framework already agreed upon, have made a major contribution to boosting the longterm stability of the European financial system. The banking lobby never tires of saying that additional regulatory requirements put considerable pressure on their institutions. I’d like to say two things here.
First, the reforms are not an end in themselves – and they are certainly not the result of blindly taking action for the sake of it. Quite the opposite: they are necessary and consistent. Necessary because the global financial crisis cast serious doubt on the functional viability of our financial system. “Carrying on” as we were is simply not an option.