The President of the EBA meets with the main leaders of the Spanish financial sector
Andrea Enria, President of the EBA, shared with executives from the Spanish banking industry at a financial meeting jointly organized by CECA and AEB, the main priorities of the EBA in 2015.
Today, the third edition of the Financial Meeting took place at CECA’s headquarters in Madrid, featuring Andrea Enria, President of the European Banking Authority (EBA). For the first time, the event was jointly organized by CECA and AEB.
During his address, Andrea Enria reviewed the milestones of the restructuring of the European financial system, the results of which were evident in the stress tests conducted last October. He also focused on the pending challenges, which he believes include completing the reform of the European financial system, the deleveraging of the public and private sectors, improving the functioning of internal risk management models, and restoring investor and market confidence in the banks that comprise the new European financial sector.
The President of the EBA defended the reforms aimed at strengthening capital, arguing that evidence shows that those banks that have reached adequate capital levels have experienced greater credit growth, gained market share, and attracted cheaper financing. However, the process is not over, as Enria believes there are two aspects that need further development: the harmonization at the European level of the definition of capital (which should align with the standards set by Basel) and the establishment of the European banking resolution framework. In summary, he is convinced that the challenge now lies in improving coordination among all institutions to apply the existing regulation.
Regarding the banking assessment tests conducted jointly by the EBA and the European Central Bank (comprehensive assessment), he highlighted that they clearly demonstrate the solidity of the system, marked by the increase in capital from the stress tests of 2011 from 9.2% to 11.8%. This increase has allowed European banks to reach capital levels comparable to those of American banks, thanks to the restructuring and recapitalization efforts of the entities and the thorough cleaning of their balance sheets.
More than two hundred representatives from the Spanish financial industry attended this meeting, where they had the opportunity to share the EBA’s views on the present and immediate future of the European financial sector.
