Financial Integration in Europe
Springer Science & Business Media, 2012 M12 6 - 204 pages
One of the key issues relating to the perfonnance of national economies is the efficiency of the financial system which stands at the heart of the capital-allocation process. There are two aspects which define efficiency. Static efficiency involves the ali-in difference between rates of return provided to ultimate savers and the cost of funds to users. This 'gap', or spread, reflects the direct costs of production (operating and administrative costs, cost of capital, etc.). It also reflects losses incurred in the financial process, as well as any monopoly profits earned and liquidity premiums. Financial processes that are considered 'statically inefficient' are usually characterised by high 'spreads' due to high overhead costs, high losses, barriers to entry, and the like. Dynamic efficiency is characterised by high rates of financial product and process innovation through time. Successful product and process innovation broadens the menu of financial products available to ultimate issuers, ultimate savers, or other agents along the various financial process channels described above. Probably the most powerful catalyst affecting the competitive dynamics of the financial services industry has been technological change.
What people are saying - Write a review
We haven't found any reviews in the usual places.
LIBERALISATION OF CAPITAL MOVEMENTS
CREDIT INSTITUTIONS AND INVESTMENT FIRMS
in transferable Securities in 1993
Other editions - View all
Common terms and phrases
accordance Acquisition by residents activities admission of securities agreement amount annex annual accounts apply authorisation basis branch capital market capital movements central banks collective investment Commission common market Community companies competent authorities concerning consolidated COUNCIL DIRECTIVE credit conversion factors credit institutions credit risk currency debt securities December 31 deposit accounts economic EEC Treaty European European central bank exchange rate exposure financial institutions foreign freedom of establishment freedom to provide funds granted guarantee harmonisation head office host member internal market investment firms investment in transferable issued issuer liability liberalisation listing particulars loans Luxembourg monetary national law obligation off-balance-sheet official listing OJEC operations paragraph persons Portugal proceeds of liquidation proposal prospectus provide services provision of services public offer referred respect result shares Single European Act solvency margin stock exchange supervision supervisory authorities territory transferable securities UCITS undertakings for collective unit trusts units of undertakings vehicle