The European Banking Authority (EBA) has responded to the European Commission’s consultation on the competitiveness of the EU banking sector, addressing regulatory, supervisory, and reporting aspects to enhance stability and integration.
The European Banking Authority (EBA) has contributed to the European Commission’s targeted consultation on the competitiveness of the EU banking sector. The EBA responded to 43 of the 95 questions posed, drawing on its ongoing work and the report on the efficiency of the regulatory and supervisory framework published on October 1, 2025.
The response highlights the resilience of the EU banking sector, demonstrated by the 2025 EU-wide stress test, and emphasizes the sector’s diversification in size, geography, and business models. The EBA notes the presence of foreign financial institutions holding significant market shares in some segments.
Challenges identified include a volatile macroeconomic environment, geopolitical tensions, trade disruptions, and sectoral vulnerabilities such as exposures to non-bank financial institutions and transitional issues related to digital transformation, sustainability, and demographics.
The EBA discusses the digital transition, including increased competition from new entrants and the integration of technologies like artificial intelligence, cloud computing, and Big Data, along with associated risks.
The EBA’s recommendations focus on four principles: maintaining resilience through Basel III standards, maximizing the Single Market’s potential, deepening the Banking Union, and ensuring a level playing field with proportionality and avoiding fragmentation.
The response also addresses the complexity of EU banking rules, advocating for more supervisory convergence and a review of the existing rulebook, especially in areas like credit risk, governance, ESG, and supervisory processes. Consultations on these topics are ongoing, with deadlines extending into 2026.
Regarding reporting, the EBA aims to develop an integrated, cross-sectoral reporting system through the Joint Bank Reporting Committee (JBRC), established with the ECB in 2024. Efforts include harmonizing reporting standards, reducing reporting costs by 25%, and aligning requirements to supervisory needs. A public EU repository of data requests and proposals for better coordination among authorities are also under development to streamline reporting and improve transparency.
These initiatives seek to enhance the stability, efficiency, and integration of the EU banking sector, supporting its resilience and competitiveness.
