"2025: the year of competitiveness and simplification "

In the international arena, both the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) continue to focus on the same priority issues as in previous years, maintaining financial stability and supervision as core pillars. Meanwhile, in the European Union, the main focus for 2025 is promoting competitiveness and regulatory simplification, without losing sight of ESG criteria. At the same time, the EU  continues working on the implementation and development of the digital regulations on its agenda, with a special emphasis on integrating capital markets and the banking union. In the U.S., the situation is more uncertain due to the Trump Administration's new policies. However, there is a trend of creating a more favorable environment for banks and cryptocurrencies, with less emphasis on ESG criteria.

In the European Union, the main focus for 2025 is promoting competitiveness and regulatory simplification, without losing sight of ESG criteria

Regarding financial regulation and sustainable finance, globally, the priorities of the FSB and BCBS are pursuing objectives from previous years. However, the geopolitical context following the U.S. elections has created an environment of uncertainty over future global standards, such as the implementation of Basel III, which has been pushed back in the U.K., and in the U.S. there is some skepticism over the final outcome and the broader issue of U.S. commitment to global agreements. FSB and BCBS will focus on developing practical supervisory tools related to the bank  liquidity risks, greater resilience of the non-bank financial intermediation sector, for which recommendations are expected in July, monitoring of the framework for Global Systemically Important Financial Institutions (G-SIFIs), analysis of the financial risks of climate change and the next progress report and the completion of resolution framework reforms. Finally, the FSB plans to conduct a strategic revision to assess the effectiveness of implementation of regulations following the global financial crisis.

In Europe, efforts will be marked by the regulatory simplification requested in the European Commission work plan, which has presented an ‘omnibus package’ with proposals for sustainable finance regulations. This package affects corporate information on sustainability, European taxonomy, due diligence in companies,  the carbon border adjustment mechanism and the InvestEU program. Furthermore, European regulatory authorities will continue working on the implementation of the banking package transposing Basel III in the EU, which will represent a significant portion of the European Banking Authority’s (EBA) work. The EBA will focus on developing level two legislation, once level one is completed. Reform of the banking crisis management framework will continue its legislative negotiations in the trilogues while the resolution authority will begin a new phase, focusing on operationalization, simulations and preparation for potential banking crises. A new detail is that Europe seeks to promote the Savings and Investment Union in order to better channel private savings toward productive investment and reinforce the competitiveness of the financial sector. This initiative incorporates a review of the European securitization framework. Consumer protection and financial innovation remain key priorities for Europe, as well as continuing to improve the anti-money laundering and counter terrorism financing framework, an area in which the new European authority, AMLA, will become operational shortly.

Europe seeks to promote the Savings and Investment Union in order to better channel private savings toward productive investment and reinforce the competitiveness of the financial sector

In the digital environment, the FSB and BCBS will continue to address the challenges posed by cryptoassets, tokenization and artificial intelligence for financial stability. Meanwhile, the EU is still developing its regulatory framework in key diverse areas. This year, guidelines on the implementation of the Artificial Intelligence Regulation will be developed, and negotiations will continue on Financial Data Access Regulation (FIDA), and the new regulation on payment services (PSR/PSD3). In addition, the Commission has to present the proposal to transpose the BCBS standard on the prudential treatment of cryptoassets, while the EBA and European Securities and Market Authority (ESMA) will take on new supervisory roles in the framework of the regulation on cryptoasset markets (MiCA) and the regulation on digital operation resilience (DORA).  In terms of the digital euro, the European Central Bank will complete the first preparatory phase and the European Council and European Parliament will continue negotiating the legal framework proposed by the Commission. Finally, regulatory simplification and competitiveness will be central pillars in the Commission’s work plans, with a digital simplification package focused on the consistency of cybersecurity and data protection rules expected to be announced in the fourth quarter.

In all agencies and countries, there is a greater focus on implementation and simplification of current regulations, and less emphasis on developing new regulations.