Claudia Buch: Hearing of the Committee on Economic and Monetary Affairs of the European Parliament

Introductory statement by Prof Claudia Buch, Chair of the Supervisory Board of the European Central Bank, at the Hearing of the Committee on Economic and Monetary Affairs of the European Parliament, Brussels, 15 July 2025.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Thank you very much for the opportunity to exchange views with you today and to provide an update on the European banking sector.

I would like to focus on two recent developments. The first concerns the recent tariff announcements and the uncertain impact on banks. The second is the ongoing discussion about how reducing the complexity of the regulatory and supervisory framework can contribute to growth and competitiveness.

Maintaining financial sector resilience and strengthening the Single Market should guide how Europe responds to these developments. We welcome the European Parliament's focus on resilience in its resolution on banking union. Improved regulation and supervision have strengthened the European banking sector, thus promoting banks' ability to lend to the real economy and take risks. At the same time, further harmonisation of relevant national rules would reduce complexity and promote banking market integration.

Let me start by discussing how the recent tariff announcements could affect banks. The announcements and subsequent market reaction show how quickly heightened geopolitical risks can change the environment in which banks operate.