26 May 2009

Kroes – complexities call for further harmonised regulations in Europe

Banks will need to redefine their business models, Kroes said. “For many that will mean a greater focus on retail banking”, she said criticizing the currently fragmented, sometimes self-regulatory, approach of regulation in Europe.

Banks will need to redefine their business models, Competition Commissioner Neelie Kroes said on the ECB-DNB Retail Payments Conference held in Frankfurt. “For many that will mean a greater focus on retail banking”, she said.

 

The complexities of the current situation highlight the need to further harmonise regulations within the EU and to create a real level playing field amongst banks, she went on to say underlining that the “fragmented, sometimes self-regulatory, approach was not beneficial for our long-term economic health”.

 

SEPA and other forms of self-regulation need critical monitoring and evaluation, Kroes said. Rules and regulations are needed to make markets work, Kroes said. Self regulation and competition law enforcement have complementary roles to play..

 

However, The Commission also needs to make sure that cross-border acquisitions are not stopped for non-competition reasons during the phase of consolidation that the financial sector will likely enter in the coming years, the Commissioner underlined.

 

Full speech

 

© European Commission