Between Lisbon and London: Financial Sector Consolidation in the Context of the Lisbon Agenda
AbstractIt's "half-time" for the Lisbon Agenda - which has aimed to make Europe the most competitive and dynamic economy in the world by 2010. And it's "half-time" for the EU Financial Services Policy, which aims to increase financial sector integration and should give a helping hand to small and innovative companies that are a corner stone of the Lisbon strategy. But discussion on the ground continues to reveal concern that financial sector integration (and national consolidation) is putting significant pressure on some of Europe's traditional lenders to small companies. Financial sector integration has the potential to increase efficiency, competition and choice in financial intermediation. But the short-term effects of integration can vary. National consolidation leads to larger banks that may be unable or unwilling to handle business with small innovative firms. Other existing or "de novo" banks and financial institutions as well as venture capital firms play an important role in filling any potential "financing gaps". The policy implications are important. Consolidation that is unaccompanied by measures to improve or ensure market openness and contestability may prolong any adverse effects from the integration process, especially for small borrowers. Consolidation has progressed, fostering the emergence of national champions. Ease of market entry now needs to be reinforced across Europe. A stalled process of integrating Europe's financial markets could compromise the Lisbon Agenda and the prospects of some of the small and innovative companies on which its success relies.
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 Regulation2point0 in its series Working paper with number 358.
Date of creation: Dec 2005
Date of revision:
Contact details of provider:
Web page: http://regulation2point0.org/
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.:
- Marco Da Rin & Giovanna Nicodano & Alessandro Sembenelli, 2004.
"Public Policy and the Creation of Active Venture Capital Markets,"
270, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Da Rin, Marco & Nicodano, Giovanna & Sembenelli, Alessandro, 2006. "Public policy and the creation of active venture capital markets," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1699-1723, September.
- Da Rin, M. & Nicodano, G. & Sembenelli, A., 2006. "Public policy and the creation of active venture capital markets," Open Access publications from Tilburg University urn:nbn:nl:ui:12-192935, Tilburg University.
- Da Rin, Marco & Nicodano, Giovanna & Sembenelli, Alessandro, 2005. "Public policy and the creation of active venture capital markets," Working Paper Series 0430, European Central Bank.
- Bottazzi, L. & Da Rin, M. & Hellmann, T., 2004. "The changing face of the European venture capital industry: Facts and analysis," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3106559, Tilburg University.
- Corvoisier, Sandrine & Gropp, Reint, 2001.
"Bank Concentration and Retail Interest Rates,"
Working Paper Series
0072, European Central Bank.
- Laura Bottazzi & Marco Da Rin, 2002. "Venture capital in Europe and the financing of innovative companies," Economic Policy, CEPR & CES & MSH, vol. 17(34), pages 229-270, 04.
- Peter Blair Henry, 2003.
"Capital Account Liberalization, The Cost of Capital, and Economic Growth,"
NBER Working Papers
9488, National Bureau of Economic Research, Inc.
- Peter Blair Henry, 2003. "Capital-Account Liberalization, the Cost of Capital, and Economic Growth," American Economic Review, American Economic Association, vol. 93(2), pages 91-96, May.
- Henry, Peter B., 2003. "Capital Account Liberalization, The Cost of Capital, and Economic Growth," Research Papers 1778, Stanford University, Graduate School of Business.
- Berger, Allen N, 2003.
" The Economic Effects of Technological Progress: Evidence from the Banking Industry,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 35(2), pages 141-76, April.
- Allen N. Berger, 2002. "The economic effects of technological progress: evidence from the banking industry," Finance and Economics Discussion Series 2002-50, Board of Governors of the Federal Reserve System (U.S.).
- Hans Degryse & Steven Ongena, 2005.
"Distance, Lending Relationships, and Competition,"
Journal of Finance,
American Finance Association, vol. 60(1), pages 231-266, 02.
- Degryse, H.A. & Ongena, S., 2002. "Distance, Lending Relationships and Competition," Discussion Paper 2002-16, Tilburg University, Center for Economic Research.
- Degryse, H.A. & Ongena, S., 2003. "Distance, Lending Relationships, and Competition," Discussion Paper 2003-123, Tilburg University, Center for Economic Research.
- Hans Degryse & Steven Ongena, 2002. "Distance, Lending Relationships, and Competition," CSEF Working Papers 80, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Panzar, John C & Rosse, James N, 1987. "Testing for "Monopoly" Equilibrium," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 443-56, June.
- Jeremy C. Stein, 2002. "Information Production and Capital Allocation: Decentralized versus Hierarchical Firms," Journal of Finance, American Finance Association, vol. 57(5), pages 1891-1921, October.
- Paola Sapienza, 2002. "The Effects of Banking Mergers on Loan Contracts," Journal of Finance, American Finance Association, vol. 57(1), pages 329-367, 02.
- Ken S. Cavalluzzo, 2002. "Competition, Small Business Financing, and Discrimination: Evidence from a New Survey," The Journal of Business, University of Chicago Press, vol. 75(4), pages 641-680, October.
- Stijn Claessens & Luc Laeven, 2004.
"What drives bank competition? Some international evidence,"
Federal Reserve Bank of Cleveland, pages 563-592.
- Claessens, Stijn & Laeven, Luc, 2004. "What Drives Bank Competition? Some International Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(3), pages 563-83, June.
- Claessens, Stijn & Laeven, Luc, 2003. "What drives bank competition? some international evidence," Policy Research Working Paper Series 3113, The World Bank.
- Allen N. Berger & Seth D. Bonime & Lawrence G. Goldberg & Lawrence J. White, 2004. "The Dynamics of Market Entry: The Effects of Mergers and Acquisitions on Entry in the Banking Industry," The Journal of Business, University of Chicago Press, vol. 77(4), pages 797-834, October.
- Hannan, Timothy H., 1991. "Bank commercial loan markets and the role of market structure: evidence from surveys of commercial lending," Journal of Banking & Finance, Elsevier, vol. 15(1), pages 133-149, February.
- de Juan, Rebeca, 2003. "The independent submarkets model: an application to the Spanish retail banking market," International Journal of Industrial Organization, Elsevier, vol. 21(10), pages 1461-1487, December.
- Angelini, P. & Di Salvo, R. & Ferri, G., 1998. "Availability and cost of credit for small businesses: Customer relationships and credit cooperatives," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 925-954, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Archive Maintainer).
If references are entirely missing, you can add them using this form.