19 March 2004

BdB - Continuing the Integration of European Markets for Financial Services

The Association of German Banks (BdB) published a report identifying national borders in Europe as the main barriers for customers and banks in the retail banking sector for an integrated market. Differing legal frameworks have made it virtually impossible to use financial services across borders, the BdB states, and there is still too much scope for interpreting directives at national level, particularly in the fields of consumer and investor protection.

To complete the single financial market, the BdB feels that further action is also required in connection with taxes, capital market law and European supervisory structures. On the future work for an integrated financial market the BdB concludes among others that:

in retail banking the minimum harmonisation approach needs to be developed further to increase the use of cross-border consumer credit and investment services,

the cross-boarder payments directive should be confined to areas where there is a real need for the regulation,

on clearing and settlement existing barriers have to be eliminated, and

the forthcoming Capital Adequacy Directive should not anticipate the final results of the Basel Committee’s work.

Finally the Association calls for a cross-sector system of European banking supervison. A central unit should contain regulatory and supervisory functions on a EU-wide level.

Report

© BDB - Bundesverband Deutscher Banken