ECB Governing Council Member Nagel: EU banking regulators must boldly simplify rules

Jinse Finance reported that a senior official dedicated to simplifying regulatory frameworks stated that European authorities should show courage in their efforts to reduce the regulatory burden on banks, while not compromising their risk resilience. "We should boldly move forward on this path," said European Central Bank Governing Council member Nagel. "Simplification is feasible—complex enough, but as simple as possible." Nagel is a member of an ECB working group studying ways to reduce the complexity of banking regulations. He said this should not be equated with deregulation. European officials are seeking to streamline the large number of regulatory provisions enacted by the EU after the 2008 financial crisis, in order to avoid putting European banks at a disadvantage compared to their US competitors. The United States is relaxing some of its own regulations.