The European Banking Federation (FBE) issued a letter summarising the concerns of European banks a on a number of serious obstacles that still hamper cross-border mergers and acquisitions. The difficulties range from the use of supervisory powers and restrictions on the legal ownership of some institutions to taxation issues. Among the highest on the list of priorities is the banking supervisory framework, the use supervisory powers, where the absence of uniform criteria for application and interpretation causes uncertainty. The informal rejection of advances by supervisors at an early stage is a significant obstacle to increased cross-border M&A. Other barriers pointed out in the letter include the ownership and legal structure, and the VAT on financial services.
© Graham Bishop
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