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Banking policy in the EU

10 July 2009
by inadim -- last modified 13 July 2009

Achieving an integrated market for banks and financial conglomerates is a core component of European policy in financial services sector.


The European Commission’s policies in the field of regulation of banks and financial conglomerates are based on the principles of mutual recognition and the "single passport", a system which allows financial services operators legally established in one EU Member State to establish/provide their services in the other Member States without further authorisation requirements.

Sound regulation and safe financial institutions underpin the EU principles of mutual recognition and the single passport. They are crucial for financial stability in the EU and require the establishment of a common framework ensuring prudential oversight and consumer protection all over the European internal market.

The key policy instrument to achieve this goal is the development, implementation and application of EU banking and financial conglomerates legislation with all stakeholders, covering prudential rules for credit institutions, financial conglomerates and investment firms. This includes the correct and timely transposition of legislation and the pursuit of any necessary infringement procedures, as well as the development of any useful interpretative guidance on the EU banking legislation.

Achieving an integrated market for banks and financial conglomerates is not merely an inward-looking exercise. The external dimension of the EU-banking and financial conglomerates policy, in particular in relation to the “regulatory dialogues” with the USA and Switzerland on the equivalency of supervisory objectives, is an essential component of the Commission’s policy in this area. This work is an important recognition of the need to find synergies in an increasingly globalized world market. The preparation and integration of accession countries’ transposition legislation and banking markets is also an increasingly important field of work for the services of the Commission responsible for this sector.

These services participate in a number of international fora, notably the G-10 Basel Committee on Banking Supervision, the Banking Supervision Committee of the European Central Bank and the Joint Forum on financial conglomerates.

Source: European Commission