1. Home
  2. Studies
  3. A Capital Markets Union for Europe: The Relevance of Banks and Markets
Markus Demary / Matthias Diermeier / Heide Haas IW-Policy Paper No. 18 13. July 2015 A Capital Markets Union for Europe: The Relevance of Banks and Markets

The establishment of a Capital Markets Union (CMU) is a high-priority project of the European Commission. CMU should foster additional non-bank sources of finance, mobilize private savings more efficiently and enhance capital market integration.

Download PDF
The Relevance of Banks and Markets
Markus Demary / Matthias Diermeier / Heide Haas IW-Policy Paper No. 18 13. July 2015

A Capital Markets Union for Europe: The Relevance of Banks and Markets

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

German Economic Institute (IW) German Economic Institute (IW)

The establishment of a Capital Markets Union (CMU) is a high-priority project of the European Commission. CMU should foster additional non-bank sources of finance, mobilize private savings more efficiently and enhance capital market integration.

Although more integration is needed, the Commission‘s proposal misses the role of systemic functions in a CMU. First, banks are important intermediaries specialized in credit relationships and small and medium-sized companies gain from long-term relationships with banks. Second, overcoming financial fragmentation needs sound sovereign debt markets with stable sovereign finances. In a CMU sovereign risks have to be treated adequately in bank regulation. Third, it should be assessed in advance which sources of non-bank finance will be demanded by companies and will become systemic. We recommend an integrated financial supervision for the CMU. Therefore, the European Banking Union should cover all European Union members’ systemic relevant banks. In order to mobilize private savings while coping with the CMU’s complexity, the EU should foster financial literacy.

Download PDF
The Relevance of Banks and Markets
Markus Demary / Matthias Diermeier / Heide Haas IW-Policy Paper No. 18 13. July 2015

A Capital Markets Union for Europe: The Relevance of Banks and Markets

Download PDF

German Economic Institute (IW) German Economic Institute (IW)

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Banking crisis instead of financial crisis
Michael Hüther IW-Policy Paper No. 3 24. March 2023

This time is different but still risky: Banking crisis instead of financial crisis

The current crisis of some American and European banks inevitably triggers fears that an international banking crisis could lead to a new financial crisis. But things in 2023 are very different from those in 2007.

IW

Read the article
Markus Demary / Anna-Maria Hagenberg / Jonas Zdzralek IW-Report No. 50 28. September 2022

Financing Gaps of Companies during the Covid-19 Pandemic

For firms’ business and investment decisions their access to finance is a critical determinant. In times when access to finance becomes tight, corporations face either higher capital costs or they have to postpone their investment decisions when credit lines ...

IW

More about this topic

Content element with id 8880 Content element with id 9713