Part I General Aspects, 1 Introduction

2020 ◽  
Author(s):  
Busch Danny ◽  
Ferrarini Guido ◽  
Franx Jan Paul
Keyword(s):  
Capital Markets ◽  
Banking Industry ◽  
Action Plan ◽  
The European Union ◽  
Economic Shocks ◽  
Capital Markets Union ◽  
Bank Funding ◽  
To Come ◽  
General Aspects

This introductory chapter discusses the new prospectus regime of the European Union (EU). In particular, it delves into the Action Plan on Building a Capital Markets Union (CMU). The CMU Action Plan should make it easier for providers and receivers of funds to come into contact with one another within Europe, especially across borders. This is regardless of whether raising capital occurs through the intermediation of banks, through the capital markets or through alternative channels such as crowdfunding. In addition, more non-bank funding will help to lessen dependence on the traditional banking industry and enhance the ability of the system to cope with economic shocks. The chapter considers what it means for the CMU Action Plan in light of recent events such as Brexit, before turning to a brief overview of the following chapters.

Capital Markets Union after Brexit

2018 ◽  
Author(s):  
Danny Busch ◽  
Emilios Avgouleas ◽  
Guido Ferrarini
Keyword(s):  
Capital Markets ◽  
Action Plan ◽  
Economic Perspective ◽  
Institutional Investment ◽  
Fully Integrated ◽  
Cross Border ◽  
Better Regulation ◽  
Capital Markets Union ◽  
To Come ◽  
General Aspects

In line with the European Commission's wish to create fully integrated European capital markets, its Capital Markets Union (CMU) Action Plan is intended to make it easier for providers and receivers of funds to come into contact with one another within Europe, especially across borders. This book discusses various aspects of CMU from a legal and/or economic perspective. The chapters are grouped in a thematic way, covering the following areas: (i) general aspects, (ii) Brexit, (iii) financing innovation, (iv) raising capital on the capital markets, (v) fostering retail and institutional investment, (vi) leveraging banking capacity to support the wider economy, and (vii) facilitating cross-border investing. This chapter outlines some general aspects of CMU that are not explicitly covered by the other chapters in this book: (1) the CMU objectives, (2) the EBU–CMU relationship, (3) regulatory burden, and (4) Better Regulation and the Call for Evidence.

Capital Markets Union in Europe

2018 ◽  
Keyword(s):  
Capital Markets ◽  
Market Integration ◽  
Quality Analysis ◽  
Institutional Investment ◽  
Economic Implications ◽  
Markets And Institutions ◽  
Capital Markets Union ◽  
General Aspects ◽  
Broad Overview

This book analyses the legal and economic implications of the European Commission's plans to form a Capital Markets Union (CMU) in Europe, which will have a major impact on financial markets and institutions both in the region and beyond. A detailed introductory chapter provides a broad overview of the various aspects and challenges of the CMU proposals, whilst thematically grouped chapters cover the following areas: (i) general aspects, (ii) Brexit, (iii) financing innovation, (iv) raising capital on the capital markets, (v) fostering retail and institutional investment, (vi) leveraging banking capacity to support the wider economy, (vii) facilitating cross-border investing, and (viii) comparative aspects of capital market integration. The book provides high-quality analysis of the legal and economic issues in a practical context.

The Role of Financial Innovation in EU Market Integration and the Capital Markets Union

2018 ◽  
Author(s):  
Emilios Avgouleas
Keyword(s):  
Capital Markets ◽  
Risk Sharing ◽  
Market Integration ◽  
Financial Innovation ◽  
The European Union ◽  
Recent Developments ◽  
Capital Markets Union ◽  
Critical Overview ◽  
The Eu

This chapter offers a critical overview of the issues that the European Union 27 (EU-27) will face in the context of making proper use of financial innovation to further market integration and risk sharing in the internal financial market, both key objectives of the drive to build a Capital Markets Union. Among these is the paradigm shift signalled by a technological revolution in the realm of finance and payments, which combines advanced data analytics and cloud computing (so-called FinTech). The chapter begins with a critical analysis of financial innovation and FinTech. It then traces the EU market integration efforts and explains the restrictive path of recent developments. It considers FinTech's potential to aid EU market integration and debates the merits of regulation dealing with financial innovation in the context of building a capital markets union in EU-27.

Unia Rynków Kapitałowych – ewolucja czy rewolucja europejskiego modelu rynku kapitałowego?

2019 ◽  
Vol 76 ◽  
pp. 153-170
Author(s):  
Michał Czykierda
Keyword(s):  
Capital Markets ◽  
Market Integration ◽  
The European Union ◽  
Investment Funds ◽  
Eu Member States ◽  
Long Run ◽  
Capital Markets Union ◽  
History Of ◽  
Rate Environment ◽  
The Eu

In September 2015, the European Commission announced the first actions of its plan to build a Capital Markets Union in Europe. The undertaken restructuring of the financing model is designed to make a shift in the main channel through which enterprises raise investment funds, from loans to capital, and – as a result – contribute to more dynamic growth in the EU Member States. I describe the key features of the Commission’s plan and discuss the economic rationale behind it. The plan has many strengths but also some weaknesses, such as limited ambition in the supervision and enforcement of securities regulations. Other challenges to the development of European capital markets include the financial transactions tax, the low-interest-rate environment, cultural reasons, and potential political opposition. My paper deals first of all with highlighting the structure of the financial sector in the European Union. It provides a overview of the role of the different financial and no financial sectors in offering capital funds to accomplish the needs of households, companies, governments, etc.. I also describe the history of capital market integration in the EU. The paper also analyses some important aspects of the implementation of the Capital Markets Union, which will be a key step in completing the EU Single Market. I concluded that the integration of the capital markets will be a strong step in supporting economic growth and competitiveness in the EU in the long run.

Capital Markets Union – One Year On From the Action Plan

2017 ◽  
Vol 14 (2) ◽  
Author(s):  
Miriam Parmentier
Keyword(s):  
European Commission ◽  
Capital Markets ◽  
Action Plan ◽  
Capital Markets Union ◽  
One Year

AbstractOn 30 September 2015, the European Commission adopted its Action Plan on Building a Capital Markets Union

Part II The Transatlantic Dialogue, 7 The New European Capital Markets

2021 ◽  
Author(s):  
Jordan Cally
Keyword(s):  
Financial Market ◽  
Capital Markets ◽  
Market Regulation ◽  
Technical Expertise ◽  
The European Union ◽  
New Paradigm ◽  
Financial Market Regulation ◽  
Capital Markets Union ◽  
Single Rulebook ◽  
Regulatory Models

This chapter looks at the new European capital markets. The creation of the European Securities and Markets Authority (ESMA) was ‘an epochal date for EU financial market regulation’. Whereas ESMA's role is primarily one of overall supervision and promotion of supervisory convergence, the 2007–09 financial crisis, which led to its birth, continues incrementally to push the European legislator toward reinforcing ESMA's powers and capturing increasingly more activities under the ‘Single Rulebook’. With the proposal of a Capital Markets Union and Brexit, this trend is likely to continue. Potentially, the European Union is now well placed to forge a new paradigm for the regulation of capital markets, given the increased focus and the technical expertise which ESMA brings to bear. At least in theory, the EU should no longer be beholden to US or international models for its regulatory models.

scholarly journals Market Building and the Capital Markets Union: Addressing Information Barriers in the SME Funding Market

2017 ◽  
Vol 14 (2) ◽  
Author(s):  
Pierre Schammo
Keyword(s):  
Information Sharing ◽  
Capital Markets ◽  
Paradigm Shift ◽  
Action Plan ◽  
White Paper ◽  
Access To Finance ◽  
Policy Initiatives ◽  
Information Barriers ◽  
Capital Markets Union ◽  
Policy Measures

AbstractThe Capital Markets Union (CMU) is one of the flagship policy initiatives of the Juncker Commission. The Commission’s strategy for realizing a CMU is set out in its White Paper on building a CMU. Besides describing the Commission’s vision of a CMU, the white paper includes an action plan which details the measures that are needed to build a CMU. The aim of this article is to consider the Commission’s measures in one particular area of the action plan. Specifically, this article examines the Commission’s strategy for overcoming information barriers to SME investment. By acting in this area, the Commission’s objective is to facilitate access to finance, but also to diversify sources of funding for SMEs, which are traditionally heavily dependent on bank-based finance. This article evaluates the Commission’s strategy and its prospects of success. After assessing the relevant policy measures, it will argue for a paradigm shift which is based on three pillars: a greater emphasis on market building measures; a greater emphasis on information sharing duties as one mechanism that can help to address information barriers; and a market correcting strategy to dovetail greater market building.

scholarly journals Market-based but state-led: The role of public development banks in shaping market-based finance in the European Union

2018 ◽  
Vol 22 (2) ◽  
pp. 184-204 ◽  
Author(s):  
Daniel Mertens ◽  
Matthias Thiemann
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Risk Sharing ◽  
Public Investment ◽  
Action Plan ◽  
The European Union ◽  
Excess Liquidity ◽  
Development Banks ◽  
European Investment

This paper examines the European Union’s strategy of governing the economy through financial markets by focusing on the largely unacknowledged role of public development banks, including the multilateral European Investment Bank. It argues that these state-owned financial institutions have moved into a key position in the recent evolution of the European financial system and economic governance. Since the crisis, policy makers have used them to address the intrinsic volatility and excess liquidity of contemporary financial markets, as well as offset the constraints on public investment imposed by institutionalized fiscal austerity. The paper provides evidence for this claim through an analysis of the emergent policy nexus between the Investment Plan for Europe and the Action Plan on Building a Capital Markets Union. Based on official documents and interview data, it specifically traces the risk-sharing devices for small- and medium-sized enterprise and infrastructure finance set up by development banks within these initiatives. Equipped with public guarantees, they have been instrumental for the promotion of securitization markets and public–private partnerships through increased multilevel collaborations among development banks. The anchor role of such quasi-fiscal state actors in shaping capital markets, the paper concludes, has profound political implications, and therefore warrants further scholarly attention.

scholarly journals Capital Markets Union: A Vision for the Long Term

2016 ◽  
Vol 2 (1) ◽  
pp. 130-153 ◽  
Author(s):  
Nicolas Véron ◽  
Guntram B. Wolff
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Financial Stability ◽  
Financial Integration ◽  
Bank Lending ◽  
The European Union ◽  
Short Term ◽  
Capital Markets Union ◽  
Improve Access

Abstract Capital Markets Union (CMU) is a welcome economic policy initiative. If well designed and implemented, it can improve access to funding, the allocation of capital, prospects for savers, and financial stability in the European Union. But since financial ecosystems only change slowly, CMU cannot be a short-term cyclical instrument to substitute for subdued bank lending. Shifting financial intermediation towards capital markets will require persistent action on multiple fronts. The policy agenda should aim to enhance both capital markets development and cross-border financial integration, two distinct but mutually reinforcing aims; to increase the transparency, reliability, and comparability of information, a key enabler of trust in financial markets which always involve information asymmetries; and to adequately address financial stability concerns. We propose a staged process to sustain the momentum and make Europe’s CMU fully worthy of its 'union' label.

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