Major European bankers demand regulatory reform and capital moratorium

Eleven CEOs of major European banks, including Ana Botín of Santander, George Elhedery of HSBC, and Christian Sewing of Deutsche Bank, have issued a joint letter to European Union leadership calling for urgent financial reforms. The executives are urging the European Commission, European Council, European Parliament, and the European Central Bank to simplify financial regulations and implement a legislative package by early 2027.

A primary demand is an immediate and temporary moratorium on increasing capital requirements. The bankers argue that because the loss-absorption capacity of EU banks is at a historic high of €2.5 trillion, banks should be allowed to channel generated capital into productive investments to drive economic growth rather than retaining it.

The group also advocates for greater financial integration with the United Kingdom and Switzerland to strengthen the continent's economic security. They highlight that Europe must address challenges such as slow growth, geopolitical instability, and the need for defense and technological competitiveness by removing barriers to private financing and investment.