When the European Union (EU) launched a policy initiative to establish a Capital Markets Union (CMU), CFA Institute conducted a survey of members in the EU (plus Switzerland) to inform the policy debate.
The objective of the CMU is to tackle the barriers to the flow of capital in Europe, diversify sources of finance for companies, and better connect investors (suppliers of capital) with the financing needs of the real economy. Historically, European companies have relied on bank lending for the vast majority of their financing needs. Against a backdrop of weak economic growth, policy makers want to supplement bank lending and grow the pool of capital available to European companies, including small and medium-sized enterprises. Removing barriers to the flow of capital, and developing and integrating capital markets are central elements of the CMU initiative.
The survey results will be used to provide feedback to the European Commission’s Green Paper on Capital Markets Union and will support our engagement with policy makers.