The European Commission has launched a public consultation on measures aimed at strengthening the competitiveness of the EU banking sector, with stakeholder feedback open until 17 September 2026.

In a new report, the Commission says that while European banks are generally resilient and well-capitalised, they remain less competitive than their global peers due to market fragmentation, regulatory complexity and challenges in implementing international banking standards.

To address these issues, the Commission proposes measures to encourage greater cross-border banking integration, simplify the regulatory framework and better adapt the implementation of Basel III rules to the specific characteristics of the EU banking sector, particularly for smaller banks.

The Commission also plans to present a new proposal for a European Deposit Insurance Scheme, replacing the 2015 proposal, to support deeper market integration while maintaining financial stability.

Legislative proposals are expected in the first quarter of 2027, with the current consultation intended to gather input from industry and other stakeholders before the reforms are drafted.