Strong Framework, Limited Dynamism
On February 11, 2026, the European Commission launched a Targeted Consultation on the competitiveness of the EU banking sector. This consultation will serve as a key foundation for a report on the further development of the Savings and Investments Union (SIU) this year.
The EU banking sector is highly stable, with regulation significantly strengthening the resilience of financial institutes in recent years. However, fragmented markets are hindering growth. National differences impede cross-border activity, and many institutes fail to achieve sufficient scale to compete globally. The Commission is therefore seeking feedback, particularly from market practitioners.
Vision and Key Action Areas
The consultation focuses on creating a high-performing banking system within the EU Single Market. The European Commission’s envisions the following key action areas:
- Deepening the Single Market: Banks should expand their operations across borders. A more integrated market increases competition and efficiency.
- Simplifying Rules: A clear regulatory framework reduces the day-to-day burden on financial institutes. Less complexity enhances competitiveness.
- Promoting Innovation: Digital services, new technologies, and business models are driving development in the financial sector.
- Ensuring International Competitiveness: A balanced regulatory framework strengthens EU institutes in global competition.
This consultation builds on the recommendations of the ECB’s High-Level Task Force on simplifying EU banking regulation (see TSI kompakt of 15 December 2025).
Outlook: Consultation Runs Until April 2026
There is no shortage of calls for simplification, more effective regulation, and greater competitiveness in the financial sector. This consultation, open until April 19, 2026, provides an opportunity to highlight necessary steps for enhancing Europe’s competitiveness.
The Commission will evaluate the responses and use them as a basis for its report on the competitiveness of the EU banking sector. The findings will feed into the further development of the SIU. To achieve sustainable economic stimulus, it is essential to ensure a rapid, consistent, and market-driven implementation.