EU to Outline Banking Deregulation Plan Friday

According to CNBC, the European Commission will outline proposals on banking competitiveness in a report due Friday, with legislative changes for the sector planned for 2027. The draft reportedly includes moves to scale back parts of the EU's Pillar 2 leverage ratio rules, reduce extra capital buffers, cut reporting requirements for lenders and add detail on a common European Deposit and Insurance Scheme. The proposals come as U.S. investment banks posted a record quarter and European lenders continue to trail. The article said the changes could lower capital burdens, free up balance sheets and support more cross-border mergers, while U.S. banks have been gaining market share in trading, investment banking and capital markets for more than a decade. Santander, UniCredit, UBS and Deutsche Bank are due to report earnings later this month.