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SRB Response to EC Consultation on EU Banking Sector Competitiveness

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Summary

The Single Resolution Board (SRB) published its response on April 15, 2026, to the European Commission's targeted consultation on the competitiveness of the EU banking sector. The SRB emphasizes that while the banking union has substantially strengthened the resilience of EU banks, its incomplete nature continues to hinder cross-border integration and efficiency. The SRB calls for progress toward a more integrated European deposit protection framework, a strengthened approach to liquidity in resolution, and improvements to cross-border capital allocation within banking groups.

“The SRB emphasises that while the banking union has substantially strengthened the resilience of EU banks, its incomplete nature continues to hinder cross-border integration and efficiency.”

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What changed

The SRB submitted its response to the EC's targeted consultation on the competitiveness of the EU banking sector, outlining policy priorities for completing the banking union. Key recommendations include a more integrated European deposit protection framework, a strengthened and more predictable approach to liquidity in resolution, and improved cross-border allocation of capital and liquidity within banking groups. The SRB also calls for targeted simplification of the regulatory framework with greater coherence across prudential, resolution, and macroprudential requirements, while maintaining overall resilience and financial stability.\n\nThe response has no immediate legal effect as it is a consultation submission, but it signals the SRB's policy priorities ahead of the EC's planned policy response. EU banks and financial institutions should monitor EC developments, as these recommendations could shape future regulatory initiatives affecting deposit protection, resolution planning, and cross-border capital allocation requirements.

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Apr 23, 2026

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April 22, 2026

SRB response to EC consultation on the competitiveness of the EU banking sector

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The Single Resolution Board (SRB) has published its response to the European Commission's (EC) targeted consultation on the competitiveness of the EU banking sector. The SRB emphasises that while the banking union has substantially strengthened the resilience of EU banks, its incomplete nature continues to hinder cross-border integration and efficiency.

The SRB highlights the need for progress towards a more integrated European deposit protection framework, a strengthened and more predictable approach to liquidity in resolution, and improvements to the cross border allocation of capital and liquidity within banking groups, supported by robust resolvability safeguards. It also calls for targeted simplification of the regulatory framework, including greater coherence across prudential, resolution and macroprudential requirements and streamlined minimum requirement for own funds and eligible liabilities processes, while maintaining overall resilience and financial stability. The SRB states that these measures would support both market integration and the international competitiveness of EU banks, and confirmed its intention to continue engaging with the EC as it develops its policy response.

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Last updated

Classification

Agency
A&O Shearman
Published
April 22nd, 2026
Instrument
Notice
Branch
Executive
Legal weight
Non-binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Banks
Industry sector
5221 Commercial Banking
Activity scope
Regulatory consultation response Cross-border banking Resolution planning
Geographic scope
European Union EU

Taxonomy

Primary area
Banking
Operational domain
Compliance
Topics
Financial Services Financial Regulatory Reform

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