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Plans for empowering EU citizens with automatic cross-border rights to switch bank accounts within the bloc will be costly and too bureaucratic to implement, Europe’s largest banking lobby group has warned.

Britain has won backing to curb the power of the European Union market watchdog to ban short-selling in a boost to a campaign against the concentration of financial regulation in Brussels at the expense of the City of London.

Europe took a significant step forward in its ambitions to create a single banking framework for the eurozone on Thursday (12 September) after EU lawmakers granted new powers to the European Central Bank to oversee banks in the currency bloc.

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