Introductory statement by Prof Claudia Buch, Chair of the Supervisory Board of the European Central Bank, at the Hearing of the Committee on Economic and Monetary Affairs of the European Parliament, Brussels, 2 July 2026.
Euro area banks are facing a complex institutional framework. Reforms are needed to reduce undue complexities in regulation and supervision, removing frictions that could impede growth. At the same time, European banks are facing a complex risk environment. Safeguarding the resilience of banks as a foundation for sustainable growth is thus equally important.
The European Parliament's recent views on the banking union, together with the European Commission's upcoming report on the EU banking sector, offer an opportunity to outline a reform agenda to further strengthen the system.
The ECB and the Eurosystem have contributed to this debate. A key element of their contributions is their call to further promote the integration of the Single Market and complete the banking union, while preserving strong supervisory and regulatory standards. Two recent developments – the materialisation of geopolitical risks and the challenges posed by frontier AI models – underline the importance of these contributions.
The views expressed in this speech are those of the speaker and do not necessarily reflect those of the BIS.
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Authors
Claudia Buch