AFME’s new report, "Simplifying the Capital Stack", shows that streamlining the EU bank capital framework could unlock up to €2.8 trillion in additional lending to households and businesses.
The analysis highlights how reducing overlapping buffer requirements could cut banks’ cost of capital by around 62bps while maintaining financial resilience.
With Europe’s current framework among the most complex globally, the report sets out a clearer, more coherent structure to help strengthen competitiveness and support the financing needs of the European economy.