Politicians and authorities have started to examine the impact of and interaction between these individual components. And assessing the proportionality of the rules with respect to smaller institutions is a focal point of this review. Against this background, I would like to briefly outline what I believe greater proportionality in banking regulation could look like.
Any true expansion of proportionality nowadays must begin at the European level. That’s why I wholeheartedly condone the proposal recently put forward by the German and British finance ministries to review the relevant EU regulations – mainly the CRR and CRD IV, 3 but also other legal regulations. That review is lined up in the next two years.