The European Banking Authority (EBA) has today published its response to the European Commission’s consultation on strengthening the competitiveness of the EU banking sector. In its response, the EBA underlines the importance of completing the Single Market for financial services, as a key driver of banking competitiveness. Drawing on its robust analytical work, the EBA provides evidence-based insights on banking competitiveness, the Single Market and the Banking Union, as well as on the complexity and effectiveness of the regulatory framework. These insights aim to support the European Commission’s report on the EU banking competitiveness.
The EBA highlights the resilience of EU banks, strengthened by the post financial crisis reforms, while also pointing to the complex challenges facing the sector, including geopolitical risks, exposures to non-bank financial institutions, and digital transformation.
The response also builds on the EBA’s October 2025 Report on the efficiency of the regulatory and supervisory framework (the Task Force on Efficiency – TFE - Report), which put forward 21 recommendations to simplify the banking rulebook. In line with these findings, the EBA emphasises that competitiveness can be enhanced through targeted simplification, while respecting the following principles:
- maintaining resilience and credibility by staying committed to Basel III standards;
- enabling banks to fully benefit from the Single Market;
- preserving and deepening the Single Market and the Banking Union; and
- ensuring an EU level playing field, with appropriate proportionality adjustments that avoid fragmentation of the rulebook.
The EBA will continue working closely with the European Commission to support a competitive, resilient and stable banking sector.
Background
Over the past decade, the EU built up its regulatory and supervisory framework, increasing complexity and administrative burdens for institutions and authorities in some areas. In response, the EBA has launched a structured programme to promote simplification, proportionality and efficiency, while safeguarding financial stability and resilience.
A key milestone was the publication, in October 2025, of the Report on the Efficiency of the Regulatory and Supervisory Framework, which sets out targeted recommendations to streamline regulatory products, reduce reporting burden, strengthen the EBA’s contribution to the EU prudential framework and improve internal working arrangements.
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