Regulators in European Union countries have until the end of the month to prove that they are not undermining fair market competition by treating domestic banks differently than those from other Union countries, the European Commission announced on Monday.
The Commission reminded them in a letter last Friday that the free movement of capital is one of the fundamental principles of the single market.
On Monday, officials from Brussels stated that on several occasions, regulators from certain countries acted independently and unilaterally imposed “allegedly excessive protective measures” on local branches of European banks from other EU member states.
-By taking such actions, supervisors from EU member states did not respect mandatory procedures, which require them, for example, to consult with regulators from other EU countries, also responsible for that banking group- the statement said.
Regulators must inform the Commission by the end of February about “current supervisory practices” so that it can “decide on any further steps if necessary.”
