Europe needs competitive banks to finance European competitiveness

European banks play a central role in financing our economy - particularly SMEs - and in mobilising the private capital needed for investment and growth. Yet Europe’s banking market remains fragmented. National barriers, regulatory complexity and limited cross-border integration make it harder for European banks to achieve the scale needed to compete globally.

So what does competitiveness mean for banking?

For me it means completing the Banking Union in the right way, removing unjustified barriers and simplifying regulations - while maintaining financial stability. It also means ensuring that regulation is proportionate and predictable, allowing banks to invest in technology and support innovation. A strong banking sector is not the goal in itself. It is one of the tools Europe needs to turn savings into investment, investment into growth, and growth into greater European competitiveness.

That is the conversation we should be having.