Financial Markets


61 - 90 of 418
25 June 2012

October 2011 saw the latest draft of Solvency II, the European Union’s code for regulation of the insurance industry. This commentary, a collective effort by a group of academics specializing in financial, banking and insurance institutions, argues that the latest proposals need to be drafted again, urgently.

12 June 2012

In this new CEPS Commentary, Jacopo Carmassi, Carmine Di Noia and Stefano Micossi present a rationale and detailed outline for the creation of a banking union in Europe.

12 June 2012

As the banking crisis in the eurozone becomes even more acute, CEPS Chief Executive Karel Lannoo exhorts the EU to not lose further precious time in creating a fully functional bank union, which would entail three main steps: creating a single supervisory authority, a common deposit protection and a harmonised bank resolution and liquidation system.

24 May 2012

On 11-12 May 2011, SUERF, the Belgian Financial Forum, the Brussels Finance Institute and the Centre for European Policy Studies (CEPS) jointly organised the 29th SUERF Colloquium on New Paradigms in Money and Finance. The papers included in this SUERF study are based on contributions to the Colloquium. The 2008-11 financial crisis has demonstrated unsatisfactory performance in financial institutions and in financial regulation and supervision all over the world.

11 May 2012

A new CEPS Commentary finds that the European Commission's proposals for ensuring prudential supervision of the banking sector in the EU, currently under consideration in the ECFIN Council, leave much to be desired. The author, Karel Lannoo, is CEO of CEPS and head of the Financial Markets research unit.

10 May 2012

One of many uncertainties still hanging over Europe’s economic recovery in the hostile post-crisis economic environment is how the household sector will cope with the debt reduction being sought. As a decade-long trend of generous credit expansion goes into reverse, deleveraging in the household sector moves forward, but the trend is far from homogeneous across nations. It is expected that household deleveraging will take time and that it will require continued policy support to prevent an abrupt retrenchment from debt, which could obstruct countries’ recovery.

19 April 2012

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10 April 2012

This MEDPRO Technical Report shows that the monetary and exchange rate policies conducted by central banks in the south Mediterranean region display apparent homogeneity in their operational frameworks, albeit with some specificities and differing degrees of advancement.

04 April 2012

As discussions around the revision of MiFID are heating up, this paper tries to set a new regulatory and institutional framework for multilateral and bilateral execution mechanisms of complex financial instruments, such as over-the-counter derivatives and fixed income products. The author argues that the current MiFID framework is equipped to capture a great deal of multilateral derivatives and fixed income trading, but the Directive fails to provide a complete definition of bilateral execution mechanisms and has narrowed it to mainly own account trading (e.g. systematic internaliser).

29 March 2012

This MEDPRO Technical Report confirms the importance of commercial openness and macroeconomic performance (i.e. the control of inflation and stability of current account balance and exchange rate) on growth dynamics in the south Mediterranean countries. In particular, the positive impact of capital account liberalisation is conditioned by the imperative reinforcement of institutional quality, country risk reduction, and government stability.

13 March 2012

Credit reporting addresses the fundamental problem of credit markets: information asymmetry between borrowers and lenders. By providing an efficient mechanism for evaluating risk, accurate credit information enables credit markets to function more effectively and at a lower cost than would otherwise be possible. Regulators and financial market actors therefore increasingly recognise the value of credit-reporting systems for the improved management of credit risk and as a tool to enhance access to credit, thereby contributing to sustainable economic growth and financial sector stability.

27 February 2012

Updated May 2012 and reposted: In 2011, an EU legislative package on market abuse was proposed, which comprises two sets of documents: 1) a draft Regulation that will largely replace the existing Market Abuse Directive (MAD) and the level 2 measures; and a new Directive dealing with criminal sanctions. Market abuse rules are needed to ensure market integrity and investor confidence, and to allow companies to raise capital and contribute to economic growth, thereby increasing employment.

24 February 2012

The last intergovernmental agreement among 25 countries and the ESM Treaty will set the ground for greater institutional coordination on fiscal policies among euro area member states. None of these decisions, however, will be able to pull the euro area out of this crisis. The eurozone is trapped in a classic prisoner’s dilemma. The break-up of the euro remains unlikely but the exit strategy will continue to be led by a sequence of rational (but sub-optimal) decisions, which will make the process long and painful.

31 January 2012

This Commentary urges the European Parliament and EU Council to undertake a more thorough review of the draft Capital Requirements Directive IV (CRD IV), which implements Basel III in EU law. With a view to streamlining and tightening the proposal, the author argues that the most important amendments to consider are the introduction of risk-weighting on sovereign exposures within the EU and the related application in the large exposures regime, a review of the generous risk-weighting afforded to real estate, and the full application of the leverage ratio.

19 January 2012

Market study of the current state of play in Member States regarding initiatives in bank fee transparency and comparability in personal current bank accounts

02 December 2011

This Commentary surveys the latest round of stress tests administered to EU banks by the European Banking Authority (EBA) and finds their exclusive focus on a single measure of capital, the Tier 1 capital ratio of Basel III, short-sighted. While the first two stress tests underestimated the capital needs in the European banking system, the third test risks overestimating the picture in some cases.

30 November 2011

The ECMI Statistical Package represents a comprehensive collection of relevant data on the dynamics of various segments of the European capital markets, complete with graphical representations and explanatory commentary. It enables users to trace trends in European and global capital markets, so as to highlight their ongoing transformation through structural changes brought about by competitive forces, innovation, regulation or broader policy initiatives.

30 November 2011

The ECMI Statistical Package represents a comprehensive collection of relevant data on the dynamics of various segments of the European capital markets, complete with graphical representations and explanatory commentary. It enables users to trace trends in European and global capital markets, so as to highlight their ongoing transformation through structural changes brought about by competitive forces, innovation, regulation or broader policy initiatives.

30 November 2011

The ECMI Statistical Package represents a comprehensive collection of relevant data on the dynamics of various segments of the European capital markets, complete with graphical representations and explanatory commentary. It enables users to trace trends in European and global capital markets, so as to highlight their ongoing transformation through structural changes brought about by competitive forces, innovation, regulation or broader policy initiatives.

22 November 2011

Foreign currency indebtedness in new EU member states has had serious post-crisis consequences, where a substantial currency mismatch has contributed to an alteration in the macroeconomic and financial risk profile of individual countries. A pivotal challenge ahead for emerging Europe will be to strengthen institutional and monetary credibility and reinforce stable and efficient capital markets that are less dependent on foreign capital inflows. This would ultimately reduce countries’ vulnerability to future shocks to the economy, and facilitate their full-blown recovery.

04 November 2011

Although the drafts of MiFID 2.0, published on October 20th, follow largely what had been proposed by the CESR (Committee of European Securities Regulators) and the European Commission, the documents took observers by surprise in both their approach and length. This ECMI Commentary explains how the original legislation has been amended with the principal aim of levelling the playing field and examines its novel features.

21 October 2011

This paper proposes to tackle the sovereign debt and banking crises with a comprehensive multi-pillar mechanism that involves cash and synthetic solutions aimed at enhancing the European Financial Stability Facility (EFSF), but without necessitating any structural transformation. In this framework, the public and the private sectors would collaborate to design the necessary tools (a blend of cash and guarantees) that are capable of convincing the market.

19 October 2011

The Payment Services Directive was intended to provide more price transparency for users and a level playing field for efficient competition among different payment services by decreasing the inhibiting effects of different legislation, cross-subsidisation and non-cost-based pricing. The European Commission, however, intended most of these effects to come about through market-led initiatives. In the run-up to the review of the Directive, Elina Pyykkö asks in this ECRI Policy Brief whether more could not be done to promote the use of efficient payment methods.

19 October 2011

This CEPS Commentary finds that banking supervisors and regulators attach too much importance to the current capital ratios, despite the multi-indicators approach encouraged by Basel III. Drawing on the recent experience of the Belgian-French bank Dexia, the author shows that reliance on this single capital indicator can be very costly.

04 October 2011

In all likelihood, the European Commission’s proposed tax on financial services, the financial transaction tax (FTT), will raise sizeable tax revenues, which explains its political appeal in the current context. However, the tax fails to address the key factors that contributed to the global financial crisis. In the absence of global or even EU-wide cooperation, many of the transactions subject to a tax will relocate to non-cooperating countries, thereby reducing revenue prospects and the effectiveness of supervision.

15 September 2011

International standards and norms in banking regulations have, once again, leapt to the forefront of policy discussions in developed nations due to the recent crisis in the world’s financial markets. These discussions are not new, nor do they apply exclusively to the world’s most advanced economies. A sound and well-enforced regulatory regime can help developing nations to channel financial resources more efficiently into investments. For open economies, it can also act as a buffer and an important stability factor in today’s shaky market situation.

18 August 2011

The ECRI Statistical Package on Consumer Credit in Europe is a collection of data on consumer credit, covering 38 countries: the 27 EU member states, three EU candidate countries (Croatia, Turkey and the Former Yugoslav Republic of Macedonia), the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) as well as four additional key global economies (the United States, Australia, Canada and Japan). Its purpose is to provide reliable statistical information allowing users to make meaningful comparisons between these countries.

18 August 2011

The ECRI Statistical Package on Lending to Households in Europe is a collection of data on lending to households, including consumer credit, housing and other loans, in Europe, covering 38 countries: the 27 EU member states, three EU candidate countries (Croatia, Turkey and the Former Yugoslav Republic of Macedonia), the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) as well as four additional key global economies (the United States, Australia, Canada and Japan).

27 July 2011

In this ECRI Commentary, Elina Pyykkö provides a snapshot of the current state of household credit markets in Europe. She assesses how member states have recovered from the financial crisis by looking at credit markets and other financial indicators. The evidence is used to discuss what grounds the different stages of recovery provide for new EU-wide legislative proposals, in particular the proposed directive on mortgage credit.

Elina Pyykkö is a researcher at the European Credit Research Institute at CEPS.