11 December 2025

Governing Council endorses recommendations of High-Level Task Force on Simplification, which include:

• reducing the number of elements in the risk-weighted and leverage ratio framework
• introducing a materially simpler prudential regime for smaller banks, which expands on the existing EU regime
• introducing a European governance mechanism that takes a holistic view of the overall level of capital
• finalising the savings and investment union – including completion of the banking union – to foster cross-border integration and allow for more efficient capital markets

The European Central Bank (ECB) today published the recommendations of the Governing Council’s High-Level Task Force on Simplification to simplify the European regulatory, supervisory and reporting framework. These recommendations were endorsed by the Governing Council and will now be presented to the European Commission.

These proposals intend to simplify the framework, while maintaining the resilience of…