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Kotz, H., Schäfer, D. Can the Capital Markets Union deliver?. Vierteljahrshefte zur Wirtschaftsforschung, 86(2), 89-98.
Kotz, Hans-Helmut and Schäfer, Dorothea "Can the Capital Markets Union deliver?" Vierteljahrshefte zur Wirtschaftsforschung 86.2, 2017, 89-98.
Kotz, Hans-Helmut/Schäfer, Dorothea (2017): Can the Capital Markets Union deliver?, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 86, iss. 2, 89-98, [online]


Can the Capital Markets Union deliver?

Kotz, Hans-Helmut | Schäfer, Dorothea

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 86 (2017), Iss. 2 : pp. 89–98

2 Citations (CrossRef)

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Article Details

Author Details

Center for European Studies, Harvard University, Cambridge, MA, SAFE Policy Center, Goethe-Universität, Frankfurt a. M.

German Institute for Economic Research DIW Berlin, CeFEO at Jönköping International Business School and CERBE Center for Relationship Banking and Economics, Rom

Cited By

  1. Diversity across EU banking sectors: Poorly researched and underappreciated

    Kotz, Hans-Helmut | Schäfer, Dorothea

    Vierteljahrshefte zur Wirtschaftsforschung, Vol. 87 (2018), Iss. 4 P.153 [Citations: 4]
  2. How does banking diversity fit in the general vision inspiring the joint process of Banking Union and Capital Markets Union?

    Ferri, Giovanni | Neuberger, Doris

    Vierteljahrshefte zur Wirtschaftsforschung, Vol. 87 (2018), Iss. 4 P.25 [Citations: 2]


Compared to the U.S., the euro area has been underperforming in the wake of the Great Financial Crisis (GFC). This holds especially true for peripheral euro area economies. Whereas the U.S. is characterised by a financial system dominated by arms" length (capital-market oriented) interaction between providers and users of funds, in Europe, in many cases, bank intermediation dominates. However, fragile, capital-constrained banks also meant a curtailed supply of funds, an issue especially for bank-dependent small or medium-sized firms (SMEs). Hence, it appears more than evident that easing the access to capital markets (in particular through securitization) should support medium-run growth perspectives, especially in peripheral euro area economies, those worst hit. There might, however, be structural (economic) reasons why SMEs prefer (local) bank relationships. Given substantial underlying idiosyncrasies, placing SME debt, in collateralised form, on capital markets has proven difficult. Finally, the strong emphasis put in the CMU project on disintermediation comes with side-effects. National systems of finance are often part and parcel of an institutional landscape with internal coherence. Reengineering finance is therefore more than a parametric adjustment, calling for political debate.