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.
![The Relevance of Banks and Markets The Relevance of Banks and Markets](/fileadmin/_processed_/1/1/csm_IW-Policy-Paper_2015-A-Capital-Markets-Union-for-Europe_9d5e2daa7c.png)
A Capital Markets Union for Europe: The Relevance of Banks and Markets
Institut der deutschen Wirtschaft (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.
![The Relevance of Banks and Markets The Relevance of Banks and Markets](/fileadmin/_processed_/1/1/csm_IW-Policy-Paper_2015-A-Capital-Markets-Union-for-Europe_9d5e2daa7c.png)
A Capital Markets Union for Europe: The Relevance of Banks and Markets
Institut der deutschen Wirtschaft (IW)
![IW-Direktor Prof. Dr. Michael Hüther IW-Direktor Prof. Dr. Michael Hüther](/fileadmin/_processed_/c/d/csm_H%C3%BCther-Michael-2021-6_2afc0b97ce.png)
Nach Zinssenkung: EZB-Entscheidung Chance oder Risiko?
Die EZB hat den Leitzins gestern Nachmittag seit fast fünf Jahren erstmals wieder gesenkt. Warum der Zinssatz so zentral ist und welche Auswirkungen das haben könnte, bespricht IW-Direktor Michael Hüther im Interview mit dem Deutschlandfunk.
IW
EZB: Vorsicht vor zu niedrigen Leitzinsen
Die Geldhüter aus Frankfurt senken den Leitzins. Doch die Experten wiegen sich in falscher Sicherheit: Viele Trendindikatoren sind nach wie vor hoch, die Inflation könnte schnell wieder steigen. Vorsicht ist geboten.
IW