This is not the time to make banks freer

The article argues against relaxing banking regulations in Europe, emphasizing the risks of increasing market volatility and potential financial crises. Economists believe that maintaining higher capital buffers is essential for financial stability, especially given the current geopolitical tensions and economic uncertainties. Despite banks reporting record profits, they often prioritize stock buybacks over lending, raising questions about their claims of needing fewer regulations to increase credit availability. The piece highlights the importance of strong capital requirements to protect taxpayers and prevent future crises, suggesting that the current moment is not suitable for loosening these regulations.