Competitiveness is the capacity of banks to act as effective lenders and market intermediaries which source capital, provide liquidity, make markets and offer risk management solutions in support corporates and investors, whether institutional or retail, and governments. A competitive banking sector is not an end in itself, but a means to ensure that capital is efficiently allocated - including to productive investments-, that risks are appropriately managed, and markets continue to function smoothly across economic cycles, thus supporting the EU’s broader strategic objectives, including economic growth, innovation, the green and digital transitions, as well as long-term investment in infrastructure and strategic industries.
AFME supports the EU Commission’s ongoing work to address the competitiveness of the EU banking sector in response to a rapidly evolving financial landscape characterised by globalisation, digital transformation, and increasing competition from financial technology firms and non-traditional financial service providers. Our policy response intends to provide a balanced and forward-looking framework that aligns regulatory modernisation, technological advancement, and market competition by fostering an environment that supports innovation and the free flow of bank capital and liquidity, while safeguarding financial stability. In an increasingly competitive global environment, there is no time to waste, and businesses across the EU will rightly expect rapid progress from political ambition to real-world outcomes