Fragmented EU Banking Market Hinders Financing
European Banking Authority chair François-Louis Michaud warns that a fragmented banking market prevents lenders from financing the bloc's digital and defence ambitions. National differences in tax and insolvency regimes limit cross-border integration and economies of scale.
Europe's fragmented banking market is blocking lenders from achieving the scale required to fund the continent's digital and defence ambitions, according to the European Banking Authority. European banks remain well-capitalized and profitable, yet structural barriers limit cross-border operations. The warning arrives as the European Commission pushes a competitiveness agenda to mobilize regional investment.
