These proposals include important changes to the small print, and I am certain that we will be able to roll out a number of meaningful initial improvements. That said, the proposals don’t go far enough. Therefore, I strongly support more graduated regulation, including a simple set of rules for small and non-complex banks. I call this more fundamental solution the Small Banking Box.
The blueprint for this idea was drafted in a German Expert Working Group. The aim of this group was to develop specific proposals on how to fundamentally alleviate the burden of regulation on small institutions with simple business models. And it delivered on that aim.