The future of banking in Europe: regulation, supervision, and a changing competitive landscape

Regulation and supervision, Financial Strategy
/ Banking

Bank Governance Leadership Network, December 2015

The largest global banks continue to face political, regulatory, and market pressure. European banks face particularly daunting changes. As a BGLN participant recently said, “There are banks in Europe that fundamentally have to address their business models. CEOs are recognizing that what they had done for the last 10 years is no longer feasible.”  With the establishment of a European banking union, the European landscape continues to evolve. The Single Supervisory Mechanism (SSM), having completed its first year, is seeking to establish itself as a strong regulator and to ensure the stability of the European banking system. At the same time, bankers, policymakers, and other commentators are debating what banking structures will best support European economic growth. 

On November 20, 2015, Bank Governance Leadership Network (BGLN) participants met in Frankfurt to discuss the future of banking in Europe, with a particular focus on supervision and regulation under the European Central Bank’s (ECB) SSM, as well as the implications of broader regulatory and market shifts. Non-executive directors and executives from large banks were joined for a portion of the discussion by Korbinian Ibel, Director General of the SSM, and Julie Dickson, a member of the ECB Supervisory Board.  

This ViewPoints outlines themes raised in the meeting on November 20th as well as in other relevant BGLN discussions.