Advanced Search
MyIDEAS: Login to save this paper or follow this series

Regulation and Financial Innovation Trends in European Banking and the Impact on the Supply and Demand for Financial Services in Europe


Author Info

  • Molyneux, Philip

    (University of Wales and Erasmus University)


This paper outlines two major regulatory initiatives that are expected to have a substantial impact on the European banking industry and the supply and demand of financial services throughout the European Union. The first initiative is the EU's Financial Services Action Plan (FSAP), approved in 1999 with a calendar of actions to be finalised by 2005. The FSAP aims to review the existing regulatory framework, to adapt it to the demands of single financial markets in order to promote a more integrated and efficient European financial services marketplace. The second regulatory development to be discussed in this paper relates to the implementation of Basle 2, the new capital adequacy guidelines for banks. The New Basle Capital Accord has undergone an extensive review with the last round of consultations being in early 2002. The Basle Committee envisions implementation by 2006. The implementation of Basle 2 into EU banking law is expected to have a substantial impact on capital allocation and bank behaviour. Both Basle 2 and the FSAP place considerable emphasis on areas that are among the least integrated in the European financial services industry - retail lending, SME finance, bancassurance, securitisation and the regulatory treatment of collateral. The removal of barriers to trade in these areas coupled with new capital rules governing their regulation are likely to create a paradigm shift in the way in which this types of business is conducted over the next decade or so

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by United Nations University, Institute for New Technologies in its series EIFC - Technology and Finance Working Papers with number 16.

as in new window
Date of creation: 2003
Date of revision:
Handle: RePEc:dgr:unutaf:eifc03-16

Contact details of provider:
Web page:

Related research

Keywords: Banking; Legislation; Financial Services; Supply and Demand; Europe;

This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:dgr:unutaf:eifc03-16. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.