UK Finance response to European Commission Consultation on the Competitiveness of the EU Banking Sector

UK Finance has responded to the European Commission’s Targeted consultation on the Competitiveness of the EU Banking Sector.

The European Commission published its consultation, which will feed into a competitiveness report to be published in the autumn. The consultation covers a wide range of issues, including the banking competitiveness in the EU and globally, the functioning of the Single Market and Banking Union, and the complexity and effectiveness of the regulatory framework.

In UK Finance’s response, we:

Demonstrate the significant contribution that UK-based banks and financial services firms make to the EU economy
Set out the economic and financial stability benefits of the EU remaining open to cross-border banking and financial services
Illustrate the mutual benefits of deep UK-EU financial market interconnection
Outline how Article 21c of CRD VI will diminishes the benefits available to EU market participants of accessing cross-border financial services
Promote the sharing of best‑practice and learning from other jurisdictions
Highlight the importance of global alignment and international standard‑setting
How recalibrating the EU’s regulatory and supervisory framework, including its approach to non‑EU‑headquartered banks operating in the EU, could strengthen the competitiveness of the EU banking sector

Alongside our own response, UK Finance also shaped the European Banking Federation’s response to the consultation, ensuring it reflected members’ priorities on deepening UK‑EU cooperation in financial services and recognised the important role that UK‑based financial services firms play in supporting the EU economy and the bloc’s achievement of its strategic priorities.