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ARTICLE · 07 AUGUST 2026

The European Commission’s Report On Banking Competitiveness: Charting A Course For Regulatory Reform

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The European Commission has published a comprehensive report diagnosing the state of EU banking competitiveness and signaling the most significant policy intervention since Basel III completion. With European banks demonstrating strong capital positions but facing international competitiveness challenges due to market fragmentation and regulatory complexity, the report establishes competitiveness as a co-equal objective alongside financial stability. The gap between this July 2026 diagnosis and Q1 2027 legi

AfghanistanFinance and Banking
Michael Huertas
Michael Huertas
Fabian Joshua Schmidt
Fabian Joshua Schmidt
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EU RegCORE Client Alert | Banking Union

On 17 July 2026, the European Commission published its Communication and Report on the “Competitiveness of the Banking Sector and the Single Market in Banking” (COM(2026) 615 final and its more technical Staff Working Document (SWD(2026) 615 final)) and various supporting materials, delivering on the commitment made in the March 2025 Savings and Investments Union (SIU) Strategy. Banks play a vital role in the EU economy: they provide 75% of corporate debt financing and act as key intermediaries between savers and companies in capital markets. The Report serves as a diagnostic roadmap for sweeping legislative changes to the EU banking rulebook expected to be announced in Q1 2027 and marks arguably the most significant banking policy intervention since the completion of the Basel III legislative package.

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