ECB’s Makhlouf: Capital Markets Need Better Rather Than More Regulation

30 May 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Thursday said that improving the current regulation on the capital markets union (CMU) should take priority over creating a new set of rules.

Speaking at the Irish Association of Investment Managers in Dublin, Makhlouf, who heads the Central Bank of Ireland, said, according to a text provided, ‘I do not believe we can regulate capital markets into existence. That is not to say we cannot improve existing regulation. But our focus should be on building capital markets rather than building more regulation. We need to streamline what we have, making it easier to navigate and more efficient.’

The European capital markets could benefit from tax and pensions policies, he said. The industry was also key for the CMU’s success, but needed to ‘up its game in terms of the attractiveness, simplicity and cost efficiency of products.’

Risk considerations should play a central role on the future model of asset management, he said.

‘To meet changes and challenges of an increasingly connected global financial system, we must adapt to keep pace with change and meet the new risks and emerging challenges’, he said.