On 11 December 2025, the European Central Bank (ECB) issued a press release announcing that its Governing Council has endorsed the recommendations of its High-Level Task Force on Simplifications.

The recommendations 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 ECB will present the proposals to the European Commission, which is preparing a report on the overall situation of the EU banking system that is due to be presented in 2026.