European Commission 17 July 2026, COMMISSION STAFF WORKING DOCUMENT Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITEE AND THE COMMITTEE OF THE REGIONS Competitiveness of the Banking Sector and the Single Market in Banking

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This European Commission Staff Working Document provides a comprehensive economic and legal analysis of the EU banking sector's competitiveness, identifying persistent market fragmentation and regulatory complexity as primary barriers to a fully integrated Single Market. The document evaluates the implementation of international Basel III standards, the efficacy of the Crisis Management and Deposit Insurance (CMDI) framework, and the impact of Pillar 2 requirements on bank valuations and lending capacity. It concludes that addressing structural inefficiencies, such as trapped liquidity and divergent national supervisory practices, is essential to strengthening the Savings and Investments Union and the global standing of EU financial institutions.AI