Frank Elderson: Interview with Die Presse

Interview with Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, conducted by Aloysius Widmann on 14 October 2026

Almost without exception, banks complain about the high cost of regulation. Do they have a point? Or are these costs essential for the stability of the banking system?

We shouldn’t forget the financial crisis of 2008. The costs were enormous, not only for banks, but also for households, firms, taxpayers and society as a whole. Those costs far outweigh the cost of regulation. The regulatory reforms introduced after the crisis have made European banks far more resilient. Banks today are well capitalised, have high liquidity levels and are more profitable, on average, than for many years.

But wouldn’t it be possible to simplify supervision without putting the stability of the sector at risk?

It’s true that regulation and the supervisory framework have become more complex over time. One of the reasons for this is that the banks themselves differ greatly and operate in an increasingly complex environment. The risks have also become more complex, ranging from geopolitical tensions, cyber risk and climate and nature risks through to artificial intelligence.

But complexity is not an end in itself. We do of course ask ourselves constantly whether we could still achieve our objectives as supervisors with simpler rules and regulations. And we’ve already taken a whole range of measures. We’ve reduced reporting obligations and accelerated processes. But it’s important to remember that simplification is not the same as deregulation. And it is resilience that is the foundation of sustainable growth and competitiveness.

Regulation means costs, and costs can be a competitive disadvantage. What do you see as the biggest obstacles to international competitiveness for European banks?