4 Dec 2017

The links between the Risk Reduction package and the development of Europe’s capital markets

Case studies on the significance of the ongoing EU banking reforms for the end-users of capital markets and the real economy

AFME has published a new report highlighting the significant impact that key elements of the European Commission’s Risk Reduction Measures (RRM) legislative package could have on Europe’s capital markets and the wider economy.

The report sets out eight case studies which explore the potential impact of the RRM on capital markets products and transactions used by different real economy actors such as corporates, institutional investors and EU governments.

It is being released at an important moment for Europe’s financial markets where, a decade after the financial crisis, significant progress has been made towards building a stable and resilient financial system.

The Risk Reduction Package marks an important step towards completing such efforts, which comes at the same time as the EU is implementing an ambitious programme to develop Europe’s capital markets and establish a Capital Markets Union.

The report explains why the legislative proposals presented by the European Commission should not be considered in isolation, but rather in light of the very significant links they have with capital markets and the broader economy.

It includes constructive proposals for how to achieve appropriate and effective prudential rules while also enabling capital markets to support Europe’s growth objectives.