Most countries – including Brazil – already have less restrictive rules in place for smaller banks in order to ease the operational burden on them. And I am a strong proponent of extending this proportionality further. In Europe, we are currently busy fine-tuning our regulatory framework by providing some additional relief for small, low-risk institutions. Importantly, capital and liquidity requirements will remain untouched.
But we are aiming to reduce disclosure requirements, simplify reporting, and exempt some institutions from recovery and resolution planning, amongst other things. So what’s the global state of play in matters of banking regulation? One major step forward – the finalisation of Basel III – has already been taken.