Europe plans banking reforms to narrow gap with US rivals

Brussels wants to ease capital rules and enable cross-border mergers as EU banks stare down a €1.4 trillion investment gap

Europe is preparing to overhaul its banking rules in an effort to help domestic lenders compete more effectively with US financial institutions that have steadily gained market share over the past decade.

The European Commission is expected to propose reforms that would reduce capital requirements, streamline regulatory reporting and support greater cross-border consolidation across the bloc.

The planned changes are intended to strengthen banks’ capacity to fund large-scale investment across key sectors while improving profitability and investor appeal.

Analysts say the success of the reforms will depend not only on deregulation but also on whether political and legal barriers to cross-border mergers can be overcome, allowing Europe to develop banking groups with the scale needed to challenge global competitors.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

The European Commission is expected to propose reforms that would reduce capital requirements, streamline regulatory reporting and support greater cross-border consolidation across the bloc.

The planned changes are intended to strengthen banks’ capacity to fund large-scale investment across key sectors while improving profitability and investor appeal.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.