While ambitious legislative decisions in the European Union and international agreements have addressed many of the failures of financial system governance identified by the 2007–2009 international financial crisis and 2009–2013 euro-zone crisis, several of these reforms have yet to be fully implemented and still others are needed to close remaining governance gaps. This report evaluates the progress made on strengthening the regulation and architecture of the European financial system, and considers areas where further enhancements are needed. It also identifies opportunities for cooperation between the financial industry and policy makers to enhance the profitability and stability of the financial sector. It reflects the views of the three co-authors, but the discussion and conclusions draw from the deliberations at a conference co-hosted by CIGI and Oliver Wyman in Rome on November 21, 2016. The report argues that the EU Capital Markets Union and European Deposit Insurance Scheme are two of the most important initiatives for improving the European financial system and should be completed over the next few years.