President Donald Trump is set to dismantle the 2010 Dodd-Frank financial regulatory framework that was put in place as a response to the financial crisis of 2008.
Last week Trump signed an executive order directing the Treasury secretary to submit a report on recommended changes to bank regulations in 120 days. While banks across the globe wait for these changes to come through, analysts in Europe are speculating the impact of this move on the European banking sector.
"It seems the overall aim of the roll-back is to allow U.S. banks to do more business with fewer capital restrictions," Alastair Winter, chief economist at Daniel Stewart, told CNBC via email.
"Thanks to the Troubled Asset Relief Program (TARP) U.S. banks were able to recover relatively quickly from the crisis and have been in a better competitive position for several years than the Europeans who were left to themselves unless as in the UK, Spain and Portugal full-scale bail-outs were required. A roll-back is going to make the recapitalized U.S. banks even more competitive."