During the European Banking Summit on 27 September 2018, the European Banking Federation presented its vision paper for European policy makers, banks and markets in a changing world. The ABBL has been an active contributor to the paper to ensure that the paper embeds the ABBL’s vision of an integrated European financial sector that fuels dynamic, sustainable, and strong economic growth.
The regulatory changes of the last decade, while being numerous and having put significant strains to the banking sector, have ensured that the European financial markets are safer and more resilient. Beyond bringing safety to financial markets, market players in Europe in general and in Luxembourg in particular face nevertheless a series of other significant obstacles in terms of efficiency, competitive positioning, financing of innovation as well as digital transformation along with an increased focus on sustainable development.
By analysing these challenges and opportunities face by Europe in financing economic growth, the EBF’s vision includes a series of specific recommendations for a fully integrated Financial Union and the role of banks:
- Enabling banks to provide more financing to corporates and households,
- Building and integrating capital markets,
- Bringing more investors into the market,
- Ensuring fair competition, and
- Achieving sustainability.
It is, in this context, crucial to stress that banks, in their role as intermediaries between savers / intermediaries and the companies, play an essential role in generating prosperity and opportunities for European and Luxembourg citizens. More and deeper capital markets in Europe do not mean, in any circumstances, less banking. Banks have indeed, already today, a leading role in financing the future of Europe and Luxembourg, and this role will need to be further exacerbated in the coming years to ensure a stable investment environment.
By Gilles Walers, Legal Adviser, ABBL