European Banking Authority responds to European Commission competitiveness consultation urging Single Market completion and 21 point rulebook simplification anchored in Basel III

The European Banking Authority has published its response to the European Commission’s consultation on strengthening the competitiveness of the EU banking sector, positioning completion of the Single Market for financial services as a central lever for improving banks’ ability to compete. The response provides evidence-based input on EU banking competitiveness, the Single Market and the Banking Union, and the complexity and effectiveness of the prudential and supervisory framework to inform the Commission’s forthcoming report. The EBA frames EU banks as more resilient following post-financial crisis reforms, while highlighting ongoing challenges including geopolitical risks, growing exposures to non-bank financial institutions, and digital transformation pressures. Building on its October 2025 Task Force on Efficiency report with 21 recommendations, the EBA argues competitiveness can be supported through targeted simplification that preserves resilience and credibility via continued commitment to Basel III, helps banks benefit from the Single Market, deepens the Single Market and Banking Union, and maintains an EU-wide level playing field with proportionality adjustments that avoid rulebook fragmentation. The EBA plans to continue working closely with the European Commission on measures intended to support a competitive, resilient and stable EU banking sector.