In a bid to reduce fragmentation in the EU banking sector and meet companies’ growing investment needs, the European Commission has unveiled proposals aimed at making banks more competitive and potentially unlocking billions of euros for investment, but obstacles remain.

Central plank of reform limits ability of national regulators to require banks to hold extra capital on top of EU-wide rules

European Commission draft proposes easing capital rules and cross-border mergers to unlock €475 billion in trapped banking capital ahead of 2027