ABBL Institutional
Supporting Europe’s investment ambitions through smarter regulation
Published on 25 March 2025
In an interview with Radio 100,7, Camille Seillès, Secretary General of the ABBL, addressed the importance of regulatory simplification in the context of the European Union’s growing financing needs. Over the coming years, Europe will require substantial investment to meet its strategic objectives, including digital transformation, the green transition, and reinforced defence capabilities. Meeting these ambitions will not be possible through public resources alone. Banks will play a critical role in mobilising private capital – provided they have the necessary regulatory space to do so.
Summary
Europe faces growing investment needs to support major priorities such as the green transition, digital transformation and strengthened defence capabilities. In a recent interview with Radio 100,7, Camille Seillès, Secretary General of the ABBL, discussed how the financial sector can help meet these ambitions – and why a more efficient regulatory framework will be essential to unlock the banking sector’s full financing capacity.
While public funding will play a role, mobilising private capital will be critical. Banks are ready to contribute to this effort, provided that regulation allows them to channel financing effectively to households, businesses and strategic investment projects across Europe.
The case for a more efficient regulatory framework
Camille Seillès underlined that the current level of regulatory complexity represents a considerable cost for European banks, affecting their ability to support the economy. While prudential safeguards remain essential, there is a clear need to improve the efficiency of the framework. Regulatory simplification does not mean deregulation. The objective is to strike the right balance between a more efficient framework and the necessary principles of financial stability, investor protection and the security of financial systems.
Simplification would not only reduce compliance costs, but also improve the profitability of banks, thereby enabling them to provide more financing to households, businesses and major investment projects.
Unlocking capacity through securitisation
In addition to simplification, the ABBL also supports the responsible development of securitisation at European level. When properly structured, securitisation allows banks to renew their credit portfolios and free up capital for additional lending.
While the role of securitisation in the 2008 financial crisis has raised concerns, the ABBL stresses that the issue at the time was not the tool itself, but how it was used. Ensuring the quality of underlying assets and applying strong ethical standards are key to ensuring that securitisation can serve its intended purpose as a safe and effective financial instrument.
A call for balance and ambition
The ABBL’s proposals echo recent political statements calling for a regulatory framework that supports competitiveness and investment in Europe. As Camille Seillès emphasised, the goal is not to weaken the rules, but to adapt them to the evolving needs of the European economy.
In this context, the ABBL remains committed to working constructively with policymakers and stakeholders to support a regulatory environment that enables financial institutions to play their full part in addressing Europe’s long-term challenges.
Paul Wilwertz
Head of Communication, ABBL
Published on 25 March 2025