Financial Integration in EuropeSpringer Science & Business Media, 1992 - 202 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. |
Contents
1 | 8 |
1 | 15 |
2222 | 25 |
3 | 32 |
13 | 49 |
4 | 58 |
6 | 75 |
8 | 97 |
11 | 103 |
ERROR | 117 |
in transferable securities in 1993 | 127 |
INSURANCE COMPANIES | 157 |
PENSION FUNDS | 201 |
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accordance agreements amount annex annual accounts annual percentage rate apply authorisation balance sheet branches capital movements central banks collective investment Commission Community companies competent authorities concerning consolidated accounts COUNCIL DIRECTIVE credit conversion factor credit institutions credit risk currency debt securities deposit accounts deposit-guarantee schemes directive of December economic EEC Treaty ensure European European central bank exchange rate financial fixed assets financial institutions foreign freedom of establishment freedom to provide funds granted guarantees harmonisation head office host member implementation internal market investment firms investment in transferable issued issuer liabilities liberalisation monetary national law non-member countries obligation off-balance-sheet official listing OJEC operations paragraph payment persons proposal prospectus provide services provision of services referred replacement cost respect result shares Single European Act solvency solvency margin solvency ratios stock exchange subsidiaries supervision supervisory authorities territory transferable securities UCITS undertakings for collective unit trusts