ICMA sets out priorities on EU banking competitiveness
03 November 2026 Europe
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The International Capital Market Association (ICMA) has released a position paper, addressing the role of banks in supporting deeper, more liquid, and resilient European debt capital markets.
The paper argues that EU banking competitiveness and capital market development must be treated as a single policy challenge.
According to ICMA, current regulatory overlaps frequently constrain the ability of banks to support underwriting, market-making, hedging, and repo financing activities.
To address this, the association calls on policymakers to address regulatory constraints on banks' ability to deploy balance sheets efficiently, while introducing more risk-sensitive prudential requirements, alongside improved collateral management practices.
The body also advises simplifying regional frameworks by reducing duplication, improving international consistency, and removing existing barriers to cross-border market activity.
ICMA underlines that these reforms should preserve financial stability and strong prudential standards while enabling banks to play their full role in delivering the EU's Savings and Investments Union ambitions.
The paper argues that EU banking competitiveness and capital market development must be treated as a single policy challenge.
According to ICMA, current regulatory overlaps frequently constrain the ability of banks to support underwriting, market-making, hedging, and repo financing activities.
To address this, the association calls on policymakers to address regulatory constraints on banks' ability to deploy balance sheets efficiently, while introducing more risk-sensitive prudential requirements, alongside improved collateral management practices.
The body also advises simplifying regional frameworks by reducing duplication, improving international consistency, and removing existing barriers to cross-border market activity.
ICMA underlines that these reforms should preserve financial stability and strong prudential standards while enabling banks to play their full role in delivering the EU's Savings and Investments Union ambitions.
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