The Euromarkets after 1992
AbstractOver the last three decades, differential national regulation in conjunction with increasing capital mobility has given rise to tremendous growth in the Eurocurrency markets. In this paper, we analyze whether the announced plans of the European Commuission to remove barriers to capital flows (in July 1990) and to harmonize other financial regulations (by the end of 1992) will have a major effect on the Euromarkets. The analysis in this paper revolves around the concept of the Net Reguatory Burden (NRB). Three variables will play a crucial role for the developnent of the Euronarkets after 1992. These are (1) reserve requirements on bank deposits, (2) taxation of residents and non-residents on interest income, dividends and capital gains, and (3) disclosure of interest and dividends to tax authorities. Presently there is considerable variation in these factors across Europe. Competitive pressures should lead to a convergence of regulation, but national sovereignty leaves open the possibility for sone divergence of the NRB across European countries, and in comparison with other financial centers such as Switzerland. These differences in NRB will play a key role in determining the location and size of Euromarkets after 1992.
Download InfoIf 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.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3003.
Date of creation: Jun 1989
Date of revision:
Publication status: published as Dermine, Jean (ed.) European Banking in the 1990s. Oxford: Basil Blackwell Ltd., 1990.
Note: ITI IFM
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dooley, Michael P & Isard, Peter, 1980. "Capital Controls, Political Risk, and Deviations from Interest-Rate Parity," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 88(2), pages 370-84, April.
- Brenner, Menachem & Galai, Dan, 1986. "Implied Interest Rates," The Journal of Business, University of Chicago Press, vol. 59(3), pages 493-507, July.
- Kim, Yong Cheol & Stulz, ReneM., 1988. "The Eurobond market and corporate financial policy : A test of the clientele hypothesis," Journal of Financial Economics, Elsevier, vol. 22(2), pages 189-205, December.
- Frenkel, Jacob A & Levich, Richard M, 1975. "Covered Interest Arbitrage: Unexploited Profits?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 83(2), pages 325-38, April.
- Portes,, 1987. "Threats to International Financial Stability," Cambridge Books, Cambridge University Press, number 9780521347891, 9.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.