Europe's central banking authority is moving to streamline its capital requirement framework for financial institutions. The proposal involves consolidating two distinct capital cushion mechanisms that were originally implemented in the aftermath of the 2008 financial crisis. This regulatory shift aims to reduce complexity in the banking sector's capital adequacy rules while maintaining systemic stability. The merger of these buffers could reshape how European banks allocate their capital reserves and manage regulatory compliance. As traditional financial systems continue evolving their oversight structures, such policy adjustments often signal broader shifts in how regulators balance stability concerns with operational efficiency in the banking ecosystem.