Report on EU banks competitiveness: a (small) step in the right direction

Research evidence excerpt

Report on EU banks competitiveness: a (small) step in the right direction

Idea

July 20, 2026 03:00 AM GMT

Morgan Stanley & Co. International plc+MEuropean Banks | Europe Giulia Aurora Miotto, CFA

Equity Analyst

Report on EU banks Giulia.Aurora.Miotto@morganstanley.comMorgan Stanley Europe S.E., Madrid Branch+ +44 20 7425-5344

Alvaro Serrano

Equity Analystcompetitiveness: a (small) step Alvaro.Serrano@morganstanley.com +44 20 7425-6942

Morgan Stanley & Co. International plc+in the right direction Franco Insausti, CFA

We review the report published on Friday by the EU Franco.Insausti@morganstanley.com +44 20 7677-3769

Noemi Peruch

Commission, and highlight key points. We think this is a positive Equity Analyst

development, yet concrete legislative proposals will only come Noemi.Peruch@morganstanley.com +44 20 7677-3163

Gulnara Saitkulova

in 1Q27. Given slow progress we don't expect the market to price Equity Analyst

Gulnara.Saitkulova@morganstanley.com +44 20 7677-0313

in benefits ahead of concrete proposals next year. Ned Tidmarsh

Research Associate

What is new? The European Commission published on Friday the report on Ned.Tidmarsh@morganstanley.com +44 20 7425-0122

European banks competitiveness (see here), which includes an assessment of the Almario Sulaj

European Banking sector and identifies areas that can be improved to allow for Almario.Sulaj@morganstanley.com +44 20 7425-2049

growth while retaining the resilience that the sector has built through the years.

Banks

These are seen as necessary, alongside the other initiatives meant to deepen capital Europe

markets (such as securitisation reform, pension & investment reforms, market Industry View Attractive

infrastructure package etc) to help Europe fund investments needed in key areas Previous notes on the topic: