While the euro area banking markets for wholesale and capital market-related activities have shown clear signs of increasing integration since the introduction of the euro, the retail banking segment has remained more fragmented, leaving European firms and consumers unable to take full advantage of Economic and Monetary Union (EMU) and the Single Market.
Up to now, credit institutions domiciled in the EU have been able to manage their EU-wide business from the UK as well thanks to the EU financial services passport. This will probably no longer be an option in the future. On the one hand, the UK wishes to no longer be subject to Single Market rules after Brexit.