EU: Overloaded banking sector needs stringent antitrust regulation

A report published Monday by the European Systemic Risk Board says the EU’s banking industry is overflowed and unlikely to benefit the economy whatsoever, an issue that could be partially remedied by more stringent antitrust regulation.

According to reports, the group pinpoints an “overbanking problem” across the EU and recommends a stricter competition crackdown, along with the end of preferential financial treatment of debts.

The report, “Is Europe Overbanked?”, was lead by ESRB Advisory Scientific Committee chairman Marco Pagano. The authors argue that the EU banking industry “has reached a size where its marginal contribution to real economic growth is likely to be nil or negative.”

Full content: Bloomberg

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