Financial Markets

91 - 120 of 431
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.

22 July 2011

In his evaluation of the results from the 2nd EU bank stress test published 15 July 2011, CEPS CEO Karel Lannoo finds clear improvement compared to the first test, thanks in part to the new institutional set-up. He notes, however, that much works remains to be done on the substantive side to further calibrate the results and extend it to a broader sample of the EU banking sector.

06 July 2011

This report aims to contribute to the debate on how the EU could most efficiently respond to the challenges posed and the deficiencies revealed by the financial crisis in the area of retail credit. It is based in part on discussions that took place within the CEPS-ECRI Task Force on A New Retail Credit Regime for Europe – Setting the Right Priorities, which met between May 2010 and January 2011. Given the policy directions, the discussions focused largely on the largest component of retail credit, mortgages.

30 June 2011

In this new ECRI Commentary, Karel Lannoo offers his assessment of the Commission’s proposed Directive regulating retail mortgage credit, adopted on March 31st. While welcoming the initiative as a first step towards creating a European mortgage market, he expresses concern over the degree of harmonisation and the fact that many provisions are left to national implementing legislation or are not, especially in the case of sensitive items, covered at all.
Karel Lannoo is Chief Executive of CEPS and Director of ECRI.

24 June 2011

With substantial contributions from ECRI Managing Director Karel Lannoo and Research Fellow Diego Valiante, a new report addresses the question of stewardship (or thoughtful ownership) in the UK and the European Union, after the financial crisis. Sponsored by the CFA Institute and the FGRE Foundation for Governance Research and Education and written in cooperation with ECMI, this report considers the potential inadequacy of stewardship by the investment industry and the degree of integration of corporate governance analysis in the investment process.

01 June 2011

The sharp and widespread increase in most commodity prices has alarmed the world and raised questions around the sustainability of our economies. As shown in this ECMI Commentary, the reasons for this dramatic rise are multiple, and engaging in a witch-hunt benefits neither the market as a whole nor our economies. Solutions need to be more differentiated and oriented towards two factors: preventing price manipulation (through controls on net positions and on anti-competitive market structures) and fostering sustainability.

31 May 2011

This ECRI Commentary takes a closer look at the mortgage situation of households in Portugal, Italy, Ireland, Greece and Spain – countries whose economic condition have been under the magnifying glass throughout the eurozone debt crisis. The credit markets in these countries have witnessed fast-paced development, with the credit extended to households having increased considerably during recent decades. What will be the impact on average citizens when they start to feel their belts tightened as a result of their government’s insolvency or liquidity problems?

20 April 2011

Two years after the London G-20, CEPS Chief Executive Karel Lannoo finds that the EU is well advanced in delivering on the commitments made for the 2013 target date. Important steps have been taken on the institutional side, and regulatory changes are moving ahead. On some issues, in fact, such as remuneration, the EU has made even greater headway than the US. But certain key sensitive matters remain, such as bank resolution or structural changes.

29 March 2011

With the financial crisis, citizens suddenly realized that different levels and forms of depositor protection co-existed in the EU, whereas they had been told for almost 20 years that a single market was in place. Current deposit insurance arrangements in Europe need to be changed, as they match neither market integration nor consumer expectations. But deposit insurance cannot be considered in isolation; it is part of the broader financial safety net and the crisis resolution tools for banks.

10 March 2011

The financial crisis has damaged consumer confidence in the financial services market. Trillions of euro in losses and government bail-outs have partially been borne by taxpayers, small investors and retail customers in several member states. Against this background, this new book by CEPS Senior Fellow Rym Ayadi argues that European policy-makers ought to rethink their approach to financial market integration in order to continue the construction of the internal market for retail financial services.

18 February 2011

In a context of growing uncertainty about the future of Europe's capital markets, the review of a fundamental piece of legislation such as the Markets in Financial Instruments Directive (MiFID) offers a significant opportunity to strengthen the role of the internal market and to regain investors' confidence, which has been so badly shaken by the financial crisis. MiFID has unquestionably changed the landscape of European (secondary) capital markets: leading to a more competitive environment, huge investments in technologies and greater investor protection.

10 February 2011

In this new Commentary, CEPS Chief Executive Karel Lannoo surveys the radical shift in bank capital requirements confirmed by the new Basel III Accord, with its focus on more and better quality capital, especially for the large banks. He finds, however, that the new framework is becoming very complex, and asks the big question that emerges: how does one determine when a bank is effectively Basel III-compliant, as some will soon start to claim.

04 February 2011

This report summarises the main results of a survey conducted by the European Capital Markets Institute (ECMI) during the period December 2009 - July 2010. The survey aims to investigate the actual implementation of the Markets in Financial Instruments Directive (MiFID), two years after it came into force. A general finding of this survey is that MiFID rules have had a positive impact, in particular, through fostering a more competitive environment, which has promoted, inter alia, cuts in trading fees and massive investment in technologies and infrastructure.

14 January 2011

Credit referencing occurs in many countries of the world with a primary purpose of collecting and providing information to help lenders make better decisions. However, there are many different models ranging from highly comprehensive databases of wide ranging information in the most advanced markets; to more basic registers of unpaid debts in more recently created registers.

16 December 2010

On 11 November 2010, the European Parliament approved the Alternative Investment Fund Managers (AIFM) Directive, which enters into force next year. Among the more controversial aspects of this piece of legislation are the rules applicable to third country managers and funds. This Commentary attempts to present the third country rules in an accessible manner for non-specialists and to critically discuss these rules. An Annex is provided to guide the reader through the numerous provisions and the different phases that will follow after the Directive enters into force.

01 November 2010

This article explores the limitations of the provision of deposit insurance in the European Union and assesses the revisions to the Directive on deposit guarantee schemes, as well as the need for further reform in the light of the financial crisis. The authors endorse a move towards a more effective European-wide institutional arrangement in line with a move towards a greater degree of pan-European supervision.

29 October 2010

This CEPS Task Force report analyses, from different perspectives, the huge amounts of aid that were given to the financial sector in the EU in response to the financial crisis. It finds that that there are vast differences in the way member states have offered and implemented aid to the financial sector, calling into question the coherence of the single market. It also discusses the approach followed by the European Commission on the basis of the competences foreseen in the EU Treaty and poses some alternative options.

25 October 2010

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18 October 2010

Drawing on the findings of a major research project investigating the relative contribution of ‘stakeholder value’ vs ‘shareholder value’ institutions to the economy, CEPS Senior Fellow Rym Ayadi argues, in a new CEPS Commentary, on behalf of the merits of diversity in banking models.

18 October 2010

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