BPFI’s Response to the CBI’s Simplification Roadmap and ECB’s High-Level Task Force Recommendations
BPFI warmly welcomes the publication by the Central Bank of Ireland on its Simplification Roadmap. This clearly signals a strong commitment by the CBI to streamline domestic rules, reduce unnecessary complexity and remove requirements that overlap with EU rules. This also aligns closely with the ECB’s recent High‑Level Task Force recommendations to simplify the EU’s prudential, supervisory, and reporting framework.
What stands out from the CBI roadmap:
- Committing to retire domestic regulations that overlap with EU standards or are redundant.
- Emphasising proportionality – supervision tailored by size and complexity, risk-based and outcomes-focused.
- Greater use of supervisory judgement, clearer communications, and an ethos to “live their risk appetite.”
- Launching a Regulatory Impact Assessment framework.
- Setting up a new F&P unit and gatekeeping division to improve engagement with firms entering Ireland.
Positive developments from the ECB proposals:
- Merging capital buffers into just two layers: a non-releasable buffer and a releasable buffer.
- Reducing the leverage ratio framework from four elements down to a 3% minimum requirement.
- Introducing a materially simpler prudential regime for smaller banks, expanding the existing small‑banks regime.
- Simplifying the stress‑test methodology to reduce complexity and burden.
- Creating a new European governance mechanism that takes a holistic view of a bank’s overall capital position.
This combined momentum at both EU and national level is a very positive signal and one which we look forward to engaging on over 2026.
Read more here:
CBI: Central Bank of Ireland publishes roadmap to deliver a more effective and efficient regulatory framework
ECB: Simplification of the European prudential regulatory, supervisory and reporting framework
