European Union announces major banking sector reforms package
Business · 6 August 2026
Written by AI from multiple news reports
The European Union announced a package of banking reforms on 17 July 2026. The changes are designed to help EU banks compete better with American banks. American banks have gained advantages because of deregulation under Donald Trump.
The reforms include changes to rules on executive pay. Currently, bank bonuses cannot exceed twice a manager's base salary. The EU also plans to replace a 2015 deposit insurance proposal that never moved forward.
The European Commission must submit formal legislative proposals by the end of March 2027. After that, the European Parliament and Council will negotiate the final laws. The full process will take roughly one and a half years from the announcement date.