17 May 2013

Commission meets key stakeholders in the context of its consultation on the structural reform of the banking sector

This event followed the wider consultation on Structural Reform of the Banking Sector that the European Commission launched yesterday. The general objective of the reform is to ensure that the EU treats in a comprehensive manner the problems that can arise from banks being too big and too complex and to avoid that taxpayers end up having to rescue banks and pay the bill. In this context, structural reform may for the biggest and most complex banks be necessary in addition to the other adopted or ongoing reforms in the banking sector. More generally, the aim is to establish a stable and efficient banking system that serves the needs of EU citizens and the economy, increases economic growth by reducing instability and improving resource allocation, and provides an EU-coordinated response to enhance the functioning of the internal market.

The consultation focuses on the key attributes of structural reform; i.e. the scope of activities, the strength of separation, and the possible institutional scope. It is open to all stakeholders. It will run until 3rd of July, 2013.

In February 2012, the Commission established a High-level Expert Group (HLEG), chaired by Erkki Liikanen, to evaluate possible reforms to the structure of the EU’s banking sector (view). The HLEG presented its final report to the Commission on October 2nd, 2012. It concluded that the ongoing reforms to strengthen Europe’s financial sector do not address all the underlying problems in the EU banking sector, as they do not fully correct incentives for excessive risk-taking, complexity, interconnectedness and intra-group subsidies. The group’s report accordingly states that reforming the structure of banks is necessary to complement the existing reforms.

Together with today’s meeting and with the recommendations of the HLEG, the results of the consultation will contribute to the Commission’s ongoing Impact Assessment and help to devise a European framework for action to preserve the integrity of the single market. Proposals are envisaged for early autumn 2013.

Press release

Consultation

Barnier speech, 24.5.13 "Système européen de surveillance financière: une avancée majeure à consolider"

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