European Commission Outlines Challenges and Measures for Banking Sector Competitiveness

The European Commission published a Communication on the Competitiveness of the Banking Sector and the Single Market in Banking, fulfilling a commitment under the Savings and Investments Union (SIU) strategy. The communication identifies fragmentation along national lines, prudential requirements, and non-prudential barriers as key challenges. It outlines measures to address these, including a more defined regulatory regime for small banks, adjustments to remuneration frameworks, and targeted changes to the prudential framework for investment firms.