The Case for a Consolidated European Banking Act (“EUBA”)

This reflection paper makes the case for a Consolidated European Banking Act (EUBA) as a comprehensive reform of the EU banking regulatory framework. Building on more than a decade of experience with the Banking Union, the paper argues that the current Single Rule Book remains excessively fragmented, complex, and unevenly harmonised, largely due to the pervasive use of minimum harmonisation directives and national discretions. The contribution advocates a shift towards maximum harmonisation through a predominantly regulation-based framework grounded on Article 114 TFEU, complemented by a narrowly tailored directive limited to passporting and institutional aspects of national authorities. It further proposes extensive and structured delegation to Level 2 rule-making in order to enhance flexibility, technical consistency, and alignment with international standards. By addressing prudential regulation, supervisory powers, cross-border consolidation, and conduct-of-business rules within a unified legislative architecture, the paper presents the EUBA as a necessary step to strengthen financial stability, legal certainty, and the effective functioning of the EU internal banking market.