European Commission banking competitiveness report cross-border banking EDIS 2015 deposit insurance withdrawal Sewing
The European Commission today proposed more cross-border banking, simpler supervision and deeper capital-market integration in its banking competitiveness report. German banks say Brussels will also withdraw its stalled 2015 EU deposit insurance proposal. Sources: Euronews, Banke
The European Commission published its report on the competitiveness of the EU banking sector on Friday, laying the groundwork for a potential overhaul of EU banking rules. According to Euronews, the report proposes measures to encourage more cross-border banking, simplify supervisory rules and deepen the integration of EU capital markets through closer links with the Savings and Investments Union. The Association of German Banks welcomed the report. Its president Christian Sewing said the Commission's commitment to bank competitiveness was positive but warned that complexity must not slow implementation. He called for quick adjustments to the output floor, relief for trade finance and software investments, and a review and simplification of macroprudential capital buffers. The association also said the Commission is withdrawing its 2015 proposal for a European Deposit Insurance Scheme (EDIS), which had been stalled for a decade and blocked progress on the EU banking union. For European banks the report matters because it sets the agenda for the legislative proposals that will follow, and because taking the 2015 EDIS proposal off the table in its current form removes one of the longest-running disputes between member states from the negotiation. Sources: euronews.com, bankenverband.de