ECRI published its latest Commentary on the latest political agreement on the Consumer Credit Directive. Whether the Consumer Credit Directive will create a more integrated and competitive consumer credit market in Europe is still an open question, the paper says. The reasons why a crossborder credit market is virtually not existent are not only related to whether or not conditions for credit have been harmonised, but rather to a broader set of issues involving natural market barriers, limited consumer attention and probably market access problems in retail finance.
It is questionable if this directive will really have a major impact on further integration of consumer credit markets in Europe, the report continues. Whereas it might decrease the costs of business for the banking industry common standards for consumer protection might not immediately lure consumers into accepting non-national banking services.
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