ECB Proposes Raising the Simplified Supervision Threshold for Small Banks
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AI-assisted source synthesis · not an independent investigation.
On October 20, 2026, European Central Bank Executive Board member Frank Elderson said that banking supervision could be further simplified and made more proportionate, but must not evolve into a relaxation of supervision, as financial resilience remains the foundation for stable growth and competitiveness. He proposed raising the threshold for including small, non-complex banks in the simplified supervision regime from the current €5 billion to €10 billion, which is expected to bring approximately 150 additional banks under the regime. Regarding the risks posed by artificial intelligence, he also called on banks to reassess their cybersecurity measures and submit relevant action plans by the end of October. At present, reports have disclosed only the proposal to raise the threshold and the related supervisory requirements; they have not indicated that the adjustment has formally taken effect.
AI-written from reports · updated 3 hours ago
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- European Central BankSelectedECB Executive Board member Frank Elderson: Bank regulation can be simplified, but financial resilience cannot be weakened
ECB Executive Board member Frank Elderson said bank regulation can be simplified and made more proportionate, but this must not turn into regulatory easing, as financial resilience remains the foundation for stable growth and competitiveness. He suggested raising the simplified regulatory threshold for small, non-complex banks from €5 billion to €10 billion, which is expected to bring around 150 banks under the simplified regime. Regarding artificial intelligence risks, banks need to reassess their cybersecurity measures and submit relevant action plans by the end of October.
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