A Capital Market Union for Europe /

This note weighs the merits of a capital market union (CMU) for Europe, identifies major obstacles in its path, and recommends a set of carefully targeted policy actions. European capital markets are relatively small, resulting in strong bank-dependence, and are split sharply along national lines. R...

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Detalles Bibliográficos
Autor Principal: Bhatia, Ashok
Outros autores: Aiyar, Shekhar, Mitra, Srobona, Weber, Anke
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2019.
Series:Staff Discussion Notes; Staff Discussion Notes ; No. 2019/007
Acceso en liña:Full text available on IMF
Descripción
Summary:This note weighs the merits of a capital market union (CMU) for Europe, identifies major obstacles in its path, and recommends a set of carefully targeted policy actions. European capital markets are relatively small, resulting in strong bank-dependence, and are split sharply along national lines. Results include an uneven playing field in terms of corporate funding costs, the rationing out of collateral-constrained firms, and limited shock absorption. The benefits of integration center on expanding financial choice, ultimately to support capital formation and resilience. Capital market development and integration would support a healthy diversity in European finance. Proceeding methodically, the note identifies three key barriers to greater capital market integration in Europe: transparency, regulatory quality, and insolvency practices. Based on these findings, the note urges three policy priorities, focused on the three barriers. There is no roadblock-such steps should prove feasible without a new grand bargain.
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Descrición Física:1 online resource (30 pages)
Formato:Mode of access: Internet
ISSN:2617-6750
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