The draft report, which focuses on sharpening the competitiveness of EU lenders against U.S. rivals, suggests granting banking groups greater flexibility to allocate resources. Currently, national requirements compel firms to stockpile excess capital and liquidity in local subsidiaries, a practice the European Banking Federation argues severely restricts overall lending capacity.

Beyond capital mobility, the proposals outline potential relief on mortgages and loans to unrated companies, alongside a structural reform of deposit insurance schemes. These measures coincide with a push from antitrust chief Teresa Ribera, who recently called on member states to facilitate cross-border bank mergers to solidify the single market. While the Commission’s formal assessment is slated for July, concrete legislative changes are not expected until 2027.