European banks are urging the European Union (EU) to classify them as a strategic sector, warning that their competitiveness and the future of the bloc are at risk, according to a Tuesday report cited by Reuters.
The European Banking Federation (EBF) is leading this call with a list of 45 policy recommendations ahead of the European elections in June.
This is the first time such a request has been officially made at the European level, as the EBF report addressed the need for streamlined regulation, arguing that current legislation is excessive and overwhelming.
Last year, EBF president Christian Sewing urged that banks be recognised as strategic, calling them a “key factor for European sovereignty” in his role as Deutsche Bank’s chief executive.
“It is essential to acknowledge the vital and strategic role of banks in Europe’s transformation,” Sewing noted in a foreword to the 51-page report.
Despite these concerns, European officials, including European Central Bank (ECB) President Christine Lagarde, stressed that regulatory standards must not be compromised.
