February 2026: Governing Council proposes simplification of EU banking rules

European Central Bank Press Release

Governing Council endorses recommendations of High-Level Task Force on Simplification, which include:

  • reducing the number of elements in the risk-weighted and leverage ratio framework
  • introducing a materially simpler prudential regime for smaller banks, which expands on the existing EU regime
  • introducing a European governance mechanism that takes a holistic view of the overall level of capital
  • finalising the savings and investment union – including completion of the banking union – to foster cross-border integration and allow for more efficient capital markets

Link:

Press Release: Governing Council proposes simplification of EU banking rules (December 2025)