At the ECB and EUI Banking Governance High-Level Seminar in Florence on October 27, 2025, Frank Elderson, Member of the Executive Board and Vice-Chair of the Supervisory Board of the ECB, called for a more efficient and transparent approach to banking supervision — one that simplifies without weakening resilience.
Drawing inspiration from the Florentine Renaissance, Elderson compared the ECB’s simplification efforts to the architects’ return to clarity, proportion, and structure. He emphasized that simplification means removing overlaps and undue complexity, not dismantling the foundations of Europe’s robust banking system.
Elderson clarified the role of supervisory guides, which have recently been debated. He distinguished between:
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Binding obligations – derived from EU or national law,
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Supervisory expectations – non-binding directions for risk management, and
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Good practices – examples of sound methods observed among banks.
He stressed that guides do not create new legal duties but provide transparency and consistency in supervision.
The ECB is reforming its Supervisory Review and Evaluation Process (SREP) to make it leaner, more risk-based, and focused on the most relevant threats. The Bank is also reducing reporting costs, streamlining internal procedures, and shortening fit and proper assessment times.
A High-Level Task Force on Simplification is now developing proposals to make the prudential framework more straightforward without undermining stability, to be delivered by the end of 2025.
Elderson concluded that, much like the Renaissance builders, supervisors must pursue simplicity grounded in strong foundations — ensuring that Europe’s banks remain resilient, efficient, and capable of supporting the real economy.
