On 17 July 2026, European Commissioner for Financial Services Maria Luís Albuquerque presented the European Commission's report on the competitiveness of the EU banking sector, diagnosing fragmentation, regulatory complexity, and disproportionate implementation of international standards as key barriers. The report is a deliverable under the Savings and Investments Union Strategy and marks the most comprehensive assessment of banking competitiveness in years, following extensive stakeholder consultations over the past year.
banking remains too fragmented across national lines, limiting cross-border activity and scale; the EU's implementation of international standards, particularly Basel rules, does not always reflect EU specificities, creating an uneven playing field; and the EU rulebook is too complex, with compliance costs exceeding €24 billion annually, including over €11 billion on reporting alone. She argued that while European banks are resilient and profitable, resilience alone is insufficient to ensure competitiveness, given Europe's enormous investment needs in innovation, digitalisation, defence, energy security, and climate change.
The Commissioner stressed the need to complete the Banking Union, including a new approach to a common deposit protection mechanism to replace the 2015 EDIS proposal. She also called for a more proportionate regulatory framework for smaller banks, which are vital for local communities and small businesses. Albuquerque announced that a comprehensive legislative package will be presented in the first quarter of 2027, aimed at reducing barriers to cross-border banking, simplifying rules, and better tailoring international standards to EU conditions.
a legislative package with a specific deadline (Q1 2027), a call for a revised deposit protection mechanism, and a push for proportionality in regulation. However, it did not provide detailed policy plans, numerical targets, or budget figures. The policy orientation is towards greater integration and simplification, reducing regulatory burden while maintaining resilience, and shifting the mindset towards risk-taking and growth. The report does not address foreign policy directly, but the emphasis on strategic autonomy and global competitiveness implies an assertive stance vis-à-vis non-EU jurisdictions.
EU banks, especially smaller ones, would benefit from reduced compliance costs and simpler rules, but may face increased competition from cross-border consolidation. National authorities would need to cooperate more closely and avoid gold-plating, potentially reducing their regulatory autonomy. EU consumers and businesses could gain from more efficient lending and lower costs, but may face risks if risk-taking increases. The European Central Bank and European Banking Authority would see their roles evolve with new legislative proposals, potentially requiring adjustments in supervisory practices.