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2026-07-17 21:14:13
[EU Banking Competitiveness Report Sounds Alarm: Obstacles to Cross-Border Mergers Urgently Need to Be Removed] ⑴ The European Commission's latest banking competitiveness assessment report points out that market fragmentation and insufficient individual size are the core structural contradictions restricting the release of the EU banking sector's potential. Obstacles to cross-border integration severely weaken its ability to compete with international rivals. ⑵ The report specifically mentions that state-level intervention by member states in bank mergers and acquisitions directly hinders institutions from achieving cost synergy and risk diversification through economies of scale, resulting in European banks consistently lagging behind in global asset rankings and valuations. ⑶ The European Commission plans to introduce specific countermeasures in the first quarter of 2027, with core directions including allowing cross-border banks more flexible allocation of liquidity and capital between parent and subsidiary companies to reduce intra-group funding costs. ⑷ From an industry perspective, if the relevant reforms are implemented, they will significantly enhance the initiative of large European banks in cross-border resource allocation, but may also touch a nerve with some member states regarding their control over domestic financial institutions. Subsequent political maneuvering will be a key variable determining the strength of the reforms.
