EU Wants Bigger Banks to Rival US Lenders
The Commission said internal barriers and national interventions are limiting scale and could free €230 billion in liquid assets, according to its report.
- On Friday, The European Commission released a report aiming to remove internal banking barriers and reduce political interference, allowing European banks to build scale and compete against larger international rivals.
- Cross-Border mergers remain rare and often face national opposition, leaving European banks disadvantaged by market fragmentation. Germany's recent rejection of UniCredit's bid for Commerzbank exemplifies these obstacles.
- Removing constraints could release €230 billion in liquid assets, the report said. An EU official noted, "The main driver of competitiveness is not the rulebook … it's the absence of scale."
- Industry groups gave the report a mixed reception. French banking lobby FBF noted "several positive orientations," while Deutsche Bank CEO Christian Sewing urged swift action on capital requirements and financial buffers.
- The European Commission plans to propose measures in early 2027 to curb national interference in mergers and replace its decade-old deposit insurance scheme proposal with a new plan for the bloc.
19 Articles
19 Articles
(Brussels=Yonhap News) Correspondent Hyun Yun-kyung = The European Union (EU) [removes] various regulatory barriers, inefficiencies, and state-centered protectionism that have hindered the growth of the European banking sector for decades...
In a report on bank competitiveness, the European Commission admits that national barriers to mergers and complex rules hinder the creation of pan-European banks.
The European Commission is proposing to reduce the own funds that banks are obliged to keep, freeing them to give more credit and gain dimension in the face of American rivals.
The plan to merge capital markets provides for a clear path towards a more integrated, efficient and competitive banking sector," said Maria Luís Albuquerque, Commissioner for Financial Affairs. "Simplifying the rules and making them more proportionate is important, but it will not be enough. European banks need the right conditions to expand, consolidate and compete globally. This means removing obstacles in the single banking market and comple…
The Economic Times
EU wants bigger banks to rival US lenders
The European Union desires larger banks to enhance global competitiveness. Brussels aims to ease banking regulations and lower capital requirements. This move seeks to unlock more funding for various industries across Europe. Banks argue current rules hinder their ability to finance the economy. New banking rules are expected in the first half of 2027.
EU plans measures to help EU banks build scale and compete with US rivals
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