Eleven of Europe’s biggest banks just told Brussels, in polite but unmistakable terms, that the continent’s regulatory framework is holding them back. In a joint letter sent to high-ranking EU officials on September 10-11, top executives from Banco Santander, BNP Paribas, Barclays, UBS, Deutsche Bank, HSBC, and five other institutions called for immediate simplification of banking rules and deeper integration across the bloc’s fragmented financial system.
The pitch boils down to this: European banks have built up €2.5 trillion in loss-absorbing capacity. They’d like regulators to stop piling on new capital requirements so that money can actually flow into lending and investment instead of sitting in regulatory buffers.
What the banks are asking for
The letter, signed by figures including Ana Botín of Banco Santander and Jean Lemierre of BNP Paribas, makes two concrete legislative asks. First, a simplification package that would strip out redundant or overly burdensome rules governing European lenders. Second, a market integration package designed to make cross-border financing within the EU smoother and less costly. Both packages, the banks argue, should be introduced by early 2027.
The letter specifically highlighted the need to support small and medium-sized enterprises, along with strategic investments in defense, energy, and technology.
