EU retail financial market integration: mirage or reality?
AbstractAfter the successful adoption of the Financial Services Action Plan (FSAP), the integration of retail financial markets is a next frontier for the EU. Several measures covering areas such as payments, retail credit and investment funds, and stretching across different policy areas are under discussion or are in the course of being implemented. In addition, the European Commission has started to look more closely at the sector from a competition policy standpoint. But will the EU manage to create an integrated retail financial market? The single market has been on the agenda since 1992, and progress on the retail side has been extremely limited judging by certain indicators. It could even be argued that it has receded, as the EU’s single market agenda has contributed to national consolidation of operators, which has reduced competition in many smaller and medium-sized member states. This paper starts with a bird’s eye view of retail financial markets in the EU today and their degree of integration. It reviews the EU measures affecting retail financial markets and how rule-making has evolved over the last 15 years. In a third section, we discuss issues raised by EU rule-making in retail financial markets and conclude with some recommendations for policy. Retail financial markets are defined as services to consumers and small and medium enterprises (SMEs). In banking, the most important sub-sector of financial markets, retail represents over 50% of total EU activity in terms of gross income. According to European Commission estimates, retail banking represents a gross income of €250-275 billion per annum, which is equivalent to approximately 2% of total EU GDP (2004).
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Capco Institute in its journal Journal of Financial Transformation.
Volume (Year): 23 (2008)
Issue (Month): ()
Contact details of provider:
Postal: 120 Broadway, 29th Floor New York, NY 10271
Phone: +1 212 284 8600
Web page: http://www.capco.com/
Financial market integration; retail finance; financial market regulation;
Find related papers by JEL classification:
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Caterina Giannetti & Nicola Jentzsch & Giancarlo Spagnolo, 2010.
"Information Sharing and Cross-border Entry in European Banking,"
CEIS Research Paper
178, Tor Vergata University, CEIS, revised 21 Dec 2010.
- Caterina Giannetti & Nicola Jentzsch & Giancarlo Spagnolo, 2010. "Information Sharing and Cross-border Entry in European Banking," Discussion Papers of DIW Berlin 980, DIW Berlin, German Institute for Economic Research.
- Giannetti, Caterina & Jentzsch, Nicola & Spagnolo, Giancarlo, 2010. "Information Sharing and Cross-Border Entry in European Banking," ECRI Papers 2990, Centre for European Policy Studies.
- Anna Zalcewicz, 2011. "The European payments market integration process - regulation challenges," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 7(1), pages 321-340, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Springett).
If references are entirely missing, you can add them using this form.