Financial Markets and Institutions
The unit focuses on the regulation and supervision of financial institutions and financial stability; the size, diversity, corporate governance and innovation of the financial sector in Europe; the internal market for financial services; and the position of small/regional/international financial centres in a global world. We aim at analyzing European financial market integration and at recommending steps to be taken to overcome hurdles to more integration, which is a key in the Europe 2020 Agenda. Since August 2007, the unit has been active in exploring the causes, the consequences and the remedies of the financial crisis.
In the area of financial markets and institutions, CEPS also runs two independent research institutes:
- European Capital Markets Institute - ECMI conducts original research informing policy on European capital markets. Through its various activities, events and task forces, ECMI acts as a focal point for interaction between market participants, policy-makers and academics. Publications include regular commentary, policy briefs, statistics and in-depth reports, supported by an excellent academic committee.
- European Credit Research Institute - ECRI provides in-depth analysis and insight into the structure, evolution and regulation of retail financial services markets in Europe. Through its research activities, publications and conferences, ECRI keeps its members and the wider public up-to-date on topics such as retail financial services regulation, credit reporting and consumer protection at the European level.
Research Priorities 2017
The CEPS research related to financial institutions and markets will in 2017 continue to contribute to support the work of the EU institutions. More specifically;
- In the area of financial institutions the implementation and completion of the Banking Union as well as the package with reforms of banking legislation that the European Commission presented in November 2016 will be covered with publications and events. Moreover, the work on digitalisation and innovation in retail financial services will be continued with the launch of a task force report in early 2017 and a series of events and publications on specific topics later in the year when the Commission has presented its priorities in this domain.
- The long-term and internationally recognised work on bank business models and ownership structures will also be continued. This work monitors the performance of the European banks across a broad array of indicators to assess for instance whether the major changes in prudential legislation have the intended consequences for the banking sector.
- The financial markets team will launch a task force that will focus on developments in the asset management industry and how EU policies can unleash cross-border competition and foster further consolidation at the European level, for the benefit of all investors. The team will continue to follow the developments in the Capital Markets Union plan with a series of publications and events. The mid-term review that is due for 2017 should provide an occasion for the Commission to reinforce the plan. The team will continue to organise events on topical issues such as blockchain and the implementation of the revised Markets in Financial Instruments Directive (MiFID II), which is a cornerstone of the whole acquis on the provision of financial services in the European Union.
The priority of the unit is to continue to contribute to the policy debate post-financial crisis, particularly by:
- Monitoring market developments, regulatory and institutional trends and their consequences for the EU economy and its competitive position in the world;
- Identifying challenges to an integrated European financial market and recommending steps to overcome these hurdles;
- Assessing the evolving role of financial systems to better serve economic, social and environmental objectives, with particular focus on inclusion, diversity and sustainable finance;
- Exploring regional linkages and interactions with non-EU financial markets and investigating current challenges and future opportunities.
Recent CEPS publications on Finance
- Nothing ventured, nothing gained: How the EU can boost growth in small businesses and start-ups, Apostolos Thomadakis, November 2016
- Towards a better European securitisation market, Apostolos Thomadakis, November 2016
- Eliminating the cost of non-Europe in capital markets, Karel Lannoo, November 2016
- How to deal with the Resolution of Financial Market Infrastructures, Interim Report, Thomas Huertas, October 2016
- EU Financial Market Access after Brexit, Karel Lannoo, September 2016
- More Union for the EU’s IPO Market, Karel Lannoo, March 2016
- Europe’s untapped capital market: Rethinking integration after the great financial crisis, Report of the European Capital Markets Expert Group (ECMEG), Diego Valiante, Cosmina Amariei, Jan-Martin Frie, February 2016
- Brexit and the City, Karel Lannoo, January 2016