The unsurprising conclusion is that after the severe financial crisis more regulation is needed. Two report raises two major concerns. First, the need to protect the consumer. The second, the threat of fintech, which drafters believe could lead to the sale of even more complicated products and cause another new crisis in the sector.

No sandboxes

Among the measures that the report cites highlights the introduction of MIFID 2, the new payment services directive, which introduces fundamental changes in the banking industry creating a new law regulating mortgage contracts. Future investors, congress says, require more information about risks, rights and guarantees when they invest in innovative products, such as cryptocurrencies to avoid severe economic damages. The report criticises the creation of sandboxes, as a means of testing new technologies for banking

Banking union doubts

The report also questions the European banking union, suggesting ‘a series of shortcomings and dysfunctions are detected that provoke many doubts about the validity of the new model as a tool for solving the problems to be faced in relation to the regulation, supervision and resolution of financial entities, as well as to guarantee the stability of the sector. as a whole.’ Another concern on the table is the reduction from 50 financial institutions to little more than 10 between banks and savings banks, which ‘raises doubts about the trend towards consolidation as a solution in the search for a more robust and reliable financial sector.’