PRESS RELEASE

EBF calls for quick solutions to close Europe’s Investment Gap

In response to the publication of the EC report on bank competitiveness

Brussels, 17 July 2026 – The European Banking Federation (EBF) welcomes the European Commission’s bank competitiveness report and calls on EU policymakers for an ambitious banking package, emphasising the need for speed. The Commission has identified the right challenges and proposes a clear direction for the way forward. The next step is to translate this momentum into concrete actions that help unlock investment and strengthen Europe’s competitiveness. Europe’s banks stand ready to play a greater role.

The Commission’s timeline for structural reforms to banking rules is appropriate for longer-term change, but concrete short-term measures and solutions are necessary now to meet investment needs. Europe faces additional annual investment needs of EUR 1.4 trillion, significantly up from EUR 800 billion estimated in 2024. This is about strengthening Europe’s competitive position and strategic autonomy.

“We welcome the comprehensive set of measures the Commission has proposed, but Europe cannot wait for slow implementation timelines,” said Wim Mijs, EBF CEO. “We need to simplify and adjust the regulatory and prudential framework so banks can increase their contribution to the European economy. These rules are essential to safeguard the competitiveness as well as the robustness of European banks. Decisive short-term measures must be implemented alongside structural reforms.”

Why This Matters

From strategic sectors such as aerospace, shipping and aircraft financing to housing and SME lending, current rules limit banks’ ability to finance the real economy. EU banks’ share in financing strategic sectors has become too low – for example, only 20% of the financing to the EU leading aerospace company – and is declining. Aircraft financing overall has dropped sharply from around 45% to below 30% in the last 3 years.  Small and medium-sized businesses with excellent track records face higher borrowing costs due to capital requirements that bear no relationship to actual risks. The issue is not one single rule, but the cumulative effect of European and national requirements, fragmentation and duplications.

The EBF’s Call for Action

The EBF proposes action on two parallel fronts: structural reforms pursued with full ambition, and an agile process for delivering decisive short-term measures. These measures are covered within the broader set of recommendations highlighted in the Oliver Wyman report. Our main request is that decisive action is taken quickly to simplify and adjust the regulatory and prudential framework so banks and capital markets can increase their contribution to the European economy.

For more information:

Gonzalo Gasós, Senior Director of Prudential Policy & Supervision – g.gasos@ebf.eu
Media Centre Inbox – mediacentre@ebf.eu

About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation is committed to a thriving European economy that is underpinned by a stable, secure, and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.