Banking Association President Sewing: Strengthen the Competitiveness of Europe’s Banks

The Association of German Banks welcomes the report published today by the European Commission on strengthening the banking sector. The Commission's approach is comprehensive and addresses many important areas that contribute to improving the industry's competitiveness. Now the right priorities must be set and concrete improvements implemented swiftly.

Christian Sewing, President of the Association of German Banks said: "We welcome the European Commission’s commitment to strengthening the competitiveness of European banks. The report shows that many issues need to be addressed. This complexity must however not slow us down: it is now important to set clear priorities so that tangible improvements can be achieved quickly.

The objective is to enable banks to better support the European economy in meeting strategic challenges and facilitating investments in technology, defence and infrastructure. This requires a consistent focus on measures that are both achievable and implementable. The competitiveness of financial institutions must not be lost from sight.

Speed is crucial: as a first step, adjustments to the output floor, relief measures for trade finance and improvements regarding software investments must be addressed promptly. Second, macroprudential buffers should be reviewed and, above all, simplified. Rapid progress is particularly needed on capital-related and supervisory issues.

It is encouraging that the European Commission is withdrawing its 2015 proposal for a European Deposit Insurance Scheme (EDIS). This creates an opportunity to resolve a long-standing deadlock and rethink the issue from a fresh perspective.

The competitiveness of European banks must be at the centre of upcoming legislative proposals. It cannot be made dependent on other policy areas, as this would delay implementation. Europe needs strong banks to finance growth, innovation and transformation. This can only be achieved through reforms that must now be pursued decisively and without further delay."