The EU launched a consultation on the competitiveness of the banking sector, possibly in preparation for relaxing regulations.

The EU is seeking information on the competitiveness of its banking sector, which is a key step in its long-awaited regulatory review that is seen as a hindrance by industry. Documents show that the EU executive body - the European Commission will launch a public consultation to understand the competitiveness of the EU banking sector compared to international competitors. Stakeholders can submit feedback in March and April, which will be used to prepare a report to be released in the third quarter. The EU is weighing how to ease the regulatory burden on the banking sector, as the relaxation of regulations in the US and other regions could weaken the competitiveness of European banks. Banks are disappointed as regulatory efforts so far have only focused on simplifying regulatory requirements rather than lowering capital standards. According to the document, the information sought by the Commission includes data on the performance of EU banks domestically and globally, as well as their financing of the economy. European Commissioner for Financial Services Maria Luis Albuquerque stated in the document: "Thanks to European banking regulation rules, the European banking sector is now stronger and more resilient. But resilience must go hand in hand with competitiveness."