German commercial banks on Thursday called on EU regulators to act more quickly to keep up with international competition in the United States and the United Kingdom.
The European Union must take concrete measures much faster in order to make banks in the bloc more competitive, Heiner Herkenhoff, chief executive officer of the Association of German Banks (BdB), said in Frankfurt.
The European Commission intends to present its report on banking regulation and competitiveness on July 17. The BdB said this means that the legislative process will only start in the spring of 2027.
“Therefore, Europe would lose much of 2025 and 2026 – at a time when other major economies, including the US and the UK, are already adjusting and simplifying their regulatory frameworks for banks,” it said.
According to a study commissioned by the European Banking Federation, Europe’s medium-term need for additional investments is around 1.4 trillion euros ($1.6 trillion) per year, reports SEEbiz. That is 600 billion euros more than stated in the report on the European competitiveness of the former president of the ECB, Mario Draghi.
“Europe needs strong banks to finance the huge investments needed for digitalisation, energy, defense and industrial transformation. The competitiveness of today’s banks must not fall victim to political compromise,” said Herkenhoff.
Regulators in the US and UK have eased bank regulations introduced after the global financial crisis, with the US administration leading the way. Opponents warned against going too far in loosening the reins.
