The Spanish Banking Sector Advocates for Regulation that Supports Investment and Competitiveness at the IV United Nations International Conference on Financing for Development

In the context of the IV United Nations International Conference on Financing for Development, taking place in Seville, the parallel event “Facilitating Environments for the Development of Resilient Infrastructure: B20 – Business at OECD – ICC Policy Recommendations to Mobilize Private Financing” has brought together various representatives from the banking sector at an international level.

The participation of the Spanish banking sector, alongside banking associations, has emphasized the essential role of the financial sector as the foundation for the international success of economies and the prosperity of their workers and businesses, which through financing multiplies its positive effect on growth and employment.

AEB and CECA have called for greater regulatory coherence and proportionality and for optimizing financing to foster competitiveness.

The banking associations AEB and CECA advocate for the need for regulatory simplification in the banking sector, which would allow progress in investment and competitiveness for companies. This message was conveyed at the event “Facilitating Environments for the Development of Resilient Infrastructure: B20 – Business at OECD – ICC Policy Recommendations to Mobilize Private Financing,” within the framework of the IV International Conference on Financing for Development in Seville.

Specifically, they highlight the need for a coherent and standardized international regulatory framework, aimed at avoiding fragmentation on one hand, and unlocking private sector financing for resilient infrastructure.

To achieve this, in line with the recommendations of the Advisory Group of Businesses at OECD (Business at OECD-BIAC) incorporated in the document Business Priorities for the OECD Finance agenda, they advocate for the need for a common regulatory environment at the international level, stable and based on the risks faced by the financial system, centered on the balance between proportionality and effectiveness.

AEB and CECA argue that this is essential for the banking sector to effectively perform its proactive role in financing sustainable and lasting economic growth. In the same vein, and in line with the recommendations of Business at OECD (BIAC) to the OECD, they point out that the temporary introduction of extraordinary taxes on the profits of the banking sector may have unintended consequences for financial stability, as also highlighted by the European Central Bank (ECB) and the International Monetary Fund (IMF), due to its negative impact on the capacity to grant financing to households, businesses, and SMEs, and on the resilience of entities to potential economic shocks.

Likewise, they warn of the effects of regulatory and fiscal asymmetries that these ad hoc taxes produce across the economy, due to the lack of legal certainty and its consequences on foreign investments.