SRB welcomes EU Commission's banking competitiveness consultation
The Single Resolution Board (SRB) has welcomed the European Commission's communication and targeted consultation on the competitiveness of the EU banking sector. The initiative aims to foster a true single market in banking and improve capital mobility across the Union.
Unlocking EU Banking Potential
The European Commission's targeted consultation seeks stakeholder feedback on enhancing the competitiveness of the EU banking sector and completing the single market in banking.
Launched in response to a March 2025 communication on a savings and investments union, the initiative addresses persistent limitations in cross-border banking activity and an incomplete banking union.
The consultation is structured around three core areas: banking competitiveness within the EU and globally, the single market and the banking union, and the complexity and effectiveness of the regulatory framework.
The Single Resolution Board (SRB) welcomed this communication, highlighting its importance for financial stability and the broader EU economy.
The Commission plans to publish a report in 2026 assessing the banking system's overall situation and competitiveness, with stakeholder responses guiding potential future communications.
Persistent Barriers to Integration
Despite significant reforms over the past 15 years, including the establishment of the banking union, the EU's single market for banking faces persistent challenges.
While these reforms have fostered financial stability and more resilient banks, cross-border banking activity remains limited, hindering economic development.
The consultation identifies several factors preventing deeper integration, such as divergent implementation of EU banking rules, supervisory inconsistencies, and national requirements for capital and liquidity allocation.
The Single Resolution Board's comments specifically highlight the impact of non-harmonised macroprudential buffers and the incomplete banking union, particularly the lack of a European deposit insurance scheme and adequate liquidity in resolution, as key impediments.
A Necessary, Yet Complex Undertaking
This consultation is a crucial step towards addressing the long-standing fragmentation within the EU banking sector, a goal the SRB clearly supports.
However, the detailed feedback on divergent rules and the incomplete banking union underscores the deep-seated political and regulatory hurdles that persist.
While the initiative is welcome, achieving a truly integrated and competitive banking market will require more than just identifying problems; it demands decisive political will to overcome these entrenched barriers.