On 3 June 2025, the European Banking Authority (EBA) published a speech by its chairperson, José Manuel Campa. The speech was made at a high-level meeting for European Supervisors and is entitled Efficiency and effectiveness of EU financial regulation.

In his speech Mr Campa notes that there is currently a debate on how to make the regulatory environment simpler and more effective, especially by removing provisions that would be too burdensome, inconsistent and unclear. He also states that he prefers the term ‘efficiency’ rather than, for example, ‘simplification’, as he believes that it is all about achieving the best result using tools and resources in the best possible way and reducing any deterrent effects of complex regulations.

When discussing what more the EBA could do to improve the efficiency and the effectiveness of the EU regulatory framework he states, among other things, that there is some merit in looking at whether the existing level 2 and level 3 regulation is still fit for purpose and can be implemented by institutions in a simple and efficient manner. For instance, there are areas (e.g. remuneration) where the number of distinct pieces of regulation could be streamlined and simplified, for the benefit of financial institutions, and supervisors.

Mr Campa also provides a couple of examples regarding how the efficiency of the regulatory framework interacts with effectiveness. In particular, one example relates to Crisis Management and Deposit Insurance. Mr Campa states “A second example, is the current co-legislators discussions in the Crisis Management and Deposit Insurance, where we risk finalising a regulation that will put so many requirements on resolution authorities in order to execute that will make the process not efficient but, may be worse, likely ineffective in achieving its objective.”