Over the last years the political discussion on the finance sector has focused on one question: How to regulate the banking sector to achieve more financial stability? As we all know, this discussion has led to a number of results. Although rule makers sometimes „cracked a walnut with a sledgehammer“ – basically they have drawn the right conclusions and have implemented them: higher capital requirements for banks as well as stricter liquidity requirements (to unbundle the institutes) the banking union greater transparency in financial markets to name only the most important ones. However, now it is time to look ahead and move forward. Our efforts should not only focus on making the banking system as stable and safe as possible. What we need is the best possible banking system for Europe’s citizens and companies. In other words: Strong and profitable banks are indispensable – especially with regard to the many challenges Europe is facing today.

1. Financing the Europe of tomorrow
EBF’s vision paper
Christian Ossig, Chief Executive, Association of German Banks
Brussels
September 27th, 2018
EBF European Banking Summit Financing Growth

2. ©BundesverbanddeutscherBankene.V.
10 years after: stability and efficiency?!
2
2008:
Financial
crisis
Banking regulation
Financial
stability!
?
Efficiency?

3. ©BundesverbanddeutscherBankene.V.
Major challenges for Europe’s economy lie ahead
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Strong & profitable banks
in a
fully integrated European market
competitiveness
innovation
digital
transformation
sustainability
attractiveness

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EBF’s vision paper 2018
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1. Banks’ role in financing the economy
5
CompaniesBanks
• long-term relationship
• risk analysis
• loans
• payments
• risk management
• …

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NPL problem in the EU has diminished
6

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Lending in the EU has picked up again
7

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Credit standards have eased
8

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n Wider spreading and hedging of risks in the market.
n Investments in innovation require equity from the market.
n Thanks to the banks’ role and function companies are able to
obtain stable capital market funding.
2. We need more capital markets
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Capital markets
Banks

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3. Strengthen the capital markets
n harmonise civil law
n uniform supervisory rules
n revise banking regulation
n strengthen investment
culture
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fully
integrated
EU capital
market
with
strong banks
fragm
entation

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4. We need fair competition
n with other financial actors, like bigtechs
n with other regions, especially the US
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Level playing field

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5. Framework for financing sustainability
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International initiatives
the European
Commission’s
Action Plan on
Sustainable Finance
First: What is green? à Define the criteria for sustainability.
Second: Find transparent and consistent regulatory measures.
Market dynamics in
Europe

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Name:
Title:
E-mail:
Thank you for your attention
Association of German Banks
Christian Ossig
Chief Executive
Christian.Ossig@bdb.de