Frank Elderson, a member of the Executive Board of the European Central Bank (ECB), stated that he supports the simplification of regulations for smaller banks and the reduction of capital requirements for the entire banking sector.

The ECB is working on a proposal to simplify banking regulations in the European Union, in response to complaints from banks that feel disadvantaged compared to competition from the US. Elderson proposed extending regulations applied to smaller financial institutions, which have reduced reporting requirements.

Claudia Buch, the chair of the ECB's supervisory board, emphasized the need for the application of international regulations for all banks, but with a proportional approach. The ECB's new proposals will be published next month.