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Die Kapitalmarktunion: eine zweifelhafte Vision
[The Capital Market Union - a dubios vision]

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Listed:
  • Gabrisch, Hubert

Abstract

This essay examines critically the latest concept of the EU-Commission to establish a capital market union for the European Union. It finds that the overarching goals of stimulating stagnation of EU-wide financing by facilitating cross-border securitization a n d making financial markets more resilient might fail. Facilitated securitization might raise systemic risks through a deteriorated risk transformation in the banking sector, imperfect risk transfer (also abroad), and excessive leverage. It creates new liquidity glut completely separate from the needs of the real economy. In addition, this concept is in contradiction to the year-long efforts to install proper regulation and controls to European financial markets. The essay favors the regulation-and-control attempt combined with far going EU-reforms of the financial sector.

Suggested Citation

  • Gabrisch, Hubert, 2016. "Die Kapitalmarktunion: eine zweifelhafte Vision [The Capital Market Union - a dubios vision]," MPRA Paper 72287, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:72287
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    References listed on IDEAS

    as
    1. Gabrisch, Hubert, 2015. "Cross-border finance, trade imbalances and competitiveness in the euro area," MPRA Paper 68518, University Library of Munich, Germany.
    2. Hobza, Alexandr & Zeugner, Stefan, 2014. "Current accounts and financial flows in the euro area," Journal of International Money and Finance, Elsevier, vol. 48(PB), pages 291-313.
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    Keywords

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    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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