European Central Bank (ECB) officials, including Governor Fabio Panetta, are advocating for a simplification of banking regulations to avoid excessive regulation and a potential deregulation race. Panetta emphasized the need for Europe to avoid following the U.S. in deregulation, citing concerns over the divergent regulatory approaches between the two regions. He stated that a holistic assessment of existing regulations is necessary, especially as some EU nations are increasing their lobbying efforts for an urgent review of banking rules. The ECB is closely monitoring financial deregulation in the U.S. with concern, as it could impact the regulatory landscape in Europe.