Commission reviews bank competitiveness

The European Commission has published its long-awaited report on the competitiveness of the EU banking sector and the Single Market in banking. The report, officially published on 17 July, sets the starting point for next steps with both legislative and non-legislative proposals are expected in the first quarter of 2027.

The Commission finds that the banking sector has become considerably more resilient over the past 15 years and has returned to sustained profitability. However, it identifies a number of challenges, including continued fragmentation along national borders and a regulatory framework that has become unduly complex and burdensome. Alongside a range of prudential issues, it points to divergences in national consumer protection, anti-money laundering, insolvency, taxation and data protection rules as barriers to cross-border retail banking. 

The Commission commits to monitoring the national application of consumer protection rules and assessing whether such rules are gold-plated or applied in ways that unnecessarily fragment the Single Market. The Commission will also assess whether the regulatory framework sufficiently supports digital banking services, new business models and technologies including artificial intelligence.  

Eurofinas will continue to follow this work closely, engaging with institutional stakeholders as the forthcoming proposals are prepared on the issues impacting the industry.

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