ECB's Elderson says fragmentation biggest obstacle to European bank competitiveness, calls for deeper integration

ECB Executive Board member Frank Elderson states that regulatory costs, while complained about by banks, are far outweighed by the costs of the 2008 financial crisis. He argues that European banks have become more resilient through post-crisis reforms but face growing complexity from geopolitical, cyber, climate and AI risks. Elderson identifies fragmentation as the primary obstacle to competitiveness, noting Europe still lacks a truly integrated banking market. He advocates for completing the Single Market, savings and investments union, and banking union, including a European deposit insurance scheme, as the remedy to deregulation.