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Parliament adopted the two own-initiative reports from Othmar Karas (EPP/AT), reacting to a Commission Green Paper on retail financial services, and from Gianni Pittella (PES/ IT), which responds to the Commission’s inquiry into competition in retail banking.
According to the Karas report, the aim is to deliver tangible benefits for consumers by securing greater choice and lower prices, enhancing consumer confidence and empowering consumers. The report calls for an approach of “targeted full harmonisation” to the regulatory framework, i.e. making essential elements of the rules equal in all Member States, while applying mutual recognition to the rest.
There is also the possibility of a ‘28th regime’ of EU regulation specifically to cover cross-border products, which the report says is worth careful study.
Real and fair competition can arise only if there is a level playing field, with regulators applying the “same risk, same rules” approach to different businesses, the report says, but this does not mean adopting a ‘one-size-fits-all’ approach. What is needed are comparable transparency and disclosure requirements, especially at the point of sale.
The Pittella report highlights the obstacles caused to cross-border banking by a fragmented regulatory approach and highlights money laundering regulations as being one area that needs to be examined.
When customers want to change banks there should be no disruption as they close on account and open another, the report says. Charges applied for closing an account should only be those which are ‘fully justified.’ MEPs also emphasise that access to basic banking services is a right for all.
The report calls for a comparable system in all
Also, banks need to have access to fraud and credit checking data across borders, but with proper safeguards for consumer data protection.
Final reports as adopted will be forthcoming as soon as they are published on the EP website.