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A sound, resilient banking sector that efficiently allocates capital is essential for EU competitiveness. To achieve it, the EU should primarily focus on completing the banking union. It should also simplify capital and other loss-absorbency requirements, anStudy - EU Banking Sector & Competitiveness- Framing the Policy Debate - 27-05-2025
A sound, resilient banking sector that efficiently allocates capital is essential for EU competitiveness. To achieve it, the EU should primarily focus on completing the banking union. It should also simplify capital and other loss-absorbency requirements, and pool decision-making on macroprudential buffers in the banking union at the European level. The forthcoming report on banking, which the European Commission has pledged to publish in 2026, is the right horizon for addressing these aims. Given the stark risk environment, their implementation should not result in any decrease of aggregate capital requirements. Source : © European Union, 2025 - EP Read more