Podcast
Questions and Answers
What is the purpose of the Capital Markets Union (CMU)?
What is the purpose of the Capital Markets Union (CMU)?
To unlock funding for Europe's growth
According to the provided information, which type of financial structure tends to have more severe recessions during a financial crisis?
According to the provided information, which type of financial structure tends to have more severe recessions during a financial crisis?
- Bank-oriented financial systems (correct)
- Market-oriented financial systems
- Both have similar impacts
- None of the above
The results of the paper confirm that both banks and markets are important for economic growth. Banks provide services which differ from those offered by financial markets and that such services prove to be particularly beneficial for __________ countries.
The results of the paper confirm that both banks and markets are important for economic growth. Banks provide services which differ from those offered by financial markets and that such services prove to be particularly beneficial for __________ countries.
less developed
What is the primary function of financial systems in the economy?
What is the primary function of financial systems in the economy?
According to the structural approach, the financial system of an economy consists of financial markets, financial intermediaries, and financial regulators.
According to the structural approach, the financial system of an economy consists of financial markets, financial intermediaries, and financial regulators.
Define financial intermediaries and their role in fund channeling.
Define financial intermediaries and their role in fund channeling.
Banks are considered intermediaries as they transform risks, volumes, and ____, thereby acting as intermediaries in the financial system.
Banks are considered intermediaries as they transform risks, volumes, and ____, thereby acting as intermediaries in the financial system.
Match the following roles with their corresponding entities in the financial system:
Match the following roles with their corresponding entities in the financial system:
Le banche forniscono servizi diversi da quelli offerti dai mercati finanziari.
Le banche forniscono servizi diversi da quelli offerti dai mercati finanziari.
Qual è lo scopo dell'unione dei mercati finanziari?
Qual è lo scopo dell'unione dei mercati finanziari?
Secondo che cosa la crescita ulteriore dell'attività finanziaria potrebbe addirittura rallentare invece di contribuire alla crescita economica?
Secondo che cosa la crescita ulteriore dell'attività finanziaria potrebbe addirittura rallentare invece di contribuire alla crescita economica?
Qual è una delle ragioni chiave per cui il trasferimento di fondi dai risparmiatori agli spenditori è importante per un'economia finanziarizzata?
Qual è una delle ragioni chiave per cui il trasferimento di fondi dai risparmiatori agli spenditori è importante per un'economia finanziarizzata?
Secondo l'approccio strutturale, il sistema finanziario di un'economia è composto da tre componenti principali: mercati finanziari, intermediari finanziari e regolamentatori finanziari.
Secondo l'approccio strutturale, il sistema finanziario di un'economia è composto da tre componenti principali: mercati finanziari, intermediari finanziari e regolamentatori finanziari.
Nella diretta trasferenza di fondi, non c'è un'entità che "separa" il fornitore e il ricevitore delle risorse finanziarie. Questo significa che non c'è bisogno di ____________. (intermediari)
Nella diretta trasferenza di fondi, non c'è un'entità che "separa" il fornitore e il ricevitore delle risorse finanziarie. Questo significa che non c'è bisogno di ____________. (intermediari)
Per quale motivo le imperfezioni di mercato e le teorie dell'intermediazione dimostrano che l'ipotesi di mercati perfetti non si verifica nella realtà ?
Per quale motivo le imperfezioni di mercato e le teorie dell'intermediazione dimostrano che l'ipotesi di mercati perfetti non si verifica nella realtà ?
Gli intermediari finanziari svolgono un ruolo importante nel trasformare il rischio di liquidità , regolare i volumi e rendere compatibili gli orizzonti temporali.
Gli intermediari finanziari svolgono un ruolo importante nel trasformare il rischio di liquidità , regolare i volumi e rendere compatibili gli orizzonti temporali.
Cosa sono i tre componenti principali del sistema finanziario di un'economia secondo l'approccio strutturale?
Cosa sono i tre componenti principali del sistema finanziario di un'economia secondo l'approccio strutturale?
Flashcards
Role of Financial Systems
Role of Financial Systems
Financial systems channel funds from entities with surplus funds (lender-savers) to entities with a shortage of funds (borrower-spenders).
Financial Markets
Financial Markets
Markets that move funds via issuing/underwriting and trading securities, which represent claims on future income or assets.
Securities
Securities
Financial claims on the issuer's future income or assets, representing a liability for the issuer and an asset for the investor.
Financial Intermediaries
Financial Intermediaries
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Financial Regulators
Financial Regulators
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Direct Transfer of Funds
Direct Transfer of Funds
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Indirect Transfer of Funds
Indirect Transfer of Funds
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Theories of Financial Intermediation
Theories of Financial Intermediation
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EU Capital Markets Union (CMU)
EU Capital Markets Union (CMU)
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EU Financial Reforms
EU Financial Reforms
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CMU Indicator 13
CMU Indicator 13
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Financial Transformation
Financial Transformation
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Liquidity Risk
Liquidity Risk
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Interest Rate Risk
Interest Rate Risk
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Market Risk
Market Risk
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Credit Risk
Credit Risk
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Investment Risk
Investment Risk
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Study Notes
Role of Banks and Markets in Developed Economies
- Financial systems perform the essential economic function of channelling funds from entities with surplus funds (lender-savers) to units with a shortage of funds (borrower-spenders).
Functions of Financial Markets
- Financial markets are markets in which funds are moved via issuing/underwriting and then trading securities.
- Securities are financial claims on the issuer's future income or assets.
- They represent financial liabilities for the firms or Governments that issue them in order to fund raising and financial assets for the investors that underwrite them.
Financial Intermediaries
- Financial intermediaries are economic agents who make financial channeling possible.
- The first, basic, distinction must be done between banks and investment firms.
Financial Regulators
- Financial regulators are institutions that supervise and control a financial system.
- Their objective is to guarantee - at least - fair and efficient markets, financial stability, and investor protection.
Direct vs. Indirect Transfer of Funds
- The transfer of funds from savers to spenders can be realized:
- Via the banking system - indirect/intermediated transfer
- Via capital markets - direct transfer
Market Imperfections and Theories of Intermediation
- Theories of intermediation have identified the various shortcomings of the financial market:
- Uncertainty
- Transaction costs (information is not free and immediately available)
- Information asymmetries
Theories of Intermediation: Heterogeneous Preferences
- Intermediaries play an important role and capital markets carry out a fundamental function since they:
- Transform liquidity risk
- Transform volumes
- Make time horizons compatible
From Theory to Reality
- The results of the paper confirm the widely accepted view that both banks and markets are very important for economic growth.
Bank-Oriented vs. Market-Oriented Financial Systems
- The capital markets union (CMU) is a plan to unlock funding for Europe's growth.
- The Commission published an updated list of indicators to monitor progress towards the CMU objectives.
Steps towards the Capital Markets Union
- 2019: The Commission published a progress report showing that the Commission has tabled all the legislative proposals it committed to in the CMU action plan and mid-term review.
- 2017: The Commission mid-term review updated and complemented the CMU action plan by strengthening existing actions and introducing new measures in response to evolving priorities and challenges.
Overview of CMU Indicators 2023
- Indicator 13: SME use of equity across EU Member States, 2022.
Note: The above study notes cover the main points from the provided text.### Financial Intermediaries
- Financial intermediaries play a crucial role in the economy (Gambacorta et al., 2014)
- They facilitate financial transactions, provide financial services, and improve financial efficiency
Financial Structure and Growth
- The financial structure of an economy affects its growth (Gambacorta et al., 2014)
- A well-functioning financial system is essential for economic growth and development
EU Capital Markets Union
- The EU aims to create a single capital market for all EU member states (EC, 2021)
- The Capital Markets Union (CMU) aims to improve access to finance for Small and Medium-sized Enterprises (SMEs)
- The CMU package includes measures to simplify listing rules for companies, especially SMEs (EC, 2022)
EU Financial Reforms
- The EU has implemented reforms to improve the functioning of its capital markets (EC, 2021)
- The reforms aim to increase funding opportunities for SMEs and improve the overall efficiency of the financial system
Italy's Market Reform
- Italy has been pushing for market reforms to improve its financial system (Financial Times, 19/09/2023)
- However, amendments to the reforms have threatened to complicate the process (Financial Times, 19/09/2023)
Dutch Banking Tax
- Lawmakers in the Netherlands have voted for a higher tax on banks (Financial Times, 23/09/2023)
- The move has led to a decline in shares of Dutch banks
European Commission Resources
- The European Commission provides resources on the Capital Markets Union, including a factsheet and video (EC, CMU)
- The Commission also hosts an EU finance podcast, "Future Finance" (EC, 2021)
International Banking and Capital Markets
- The course "International Banking and Capital Markets" covers the topic of financial intermediaries and their role in the economy (Lesson 2, Monday 25th September 2023)
Role of Banks and Markets in Developed Economies
- Financial systems perform the essential economic function of channelling funds from entities with surplus funds (lender-savers) to units with a shortage of funds (borrower-spenders).
Functions of Financial Markets
- Financial markets are markets in which funds are moved via issuing/underwriting and then trading securities.
- Securities are financial claims on the issuer's future income or assets.
- They represent financial liabilities for the firms or Governments that issue them in order to fund raising and financial assets for the investors that underwrite them.
Financial Intermediaries
- Financial intermediaries are economic agents who make financial channeling possible.
- The first, basic, distinction must be done between banks and investment firms.
Financial Regulators
- Financial regulators are institutions that supervise and control a financial system.
- Their objective is to guarantee - at least - fair and efficient markets, financial stability, and investor protection.
Direct vs. Indirect Transfer of Funds
- The transfer of funds from savers to spenders can be realized:
- Via the banking system - indirect/intermediated transfer
- Via capital markets - direct transfer
Market Imperfections and Theories of Intermediation
- Theories of intermediation have identified the various shortcomings of the financial market:
- Uncertainty
- Transaction costs (information is not free and immediately available)
- Information asymmetries
Theories of Intermediation: Heterogeneous Preferences
- Intermediaries play an important role and capital markets carry out a fundamental function since they:
- Transform liquidity risk
- Transform volumes
- Make time horizons compatible
From Theory to Reality
- The results of the paper confirm the widely accepted view that both banks and markets are very important for economic growth.
Bank-Oriented vs. Market-Oriented Financial Systems
- The capital markets union (CMU) is a plan to unlock funding for Europe's growth.
- The Commission published an updated list of indicators to monitor progress towards the CMU objectives.
Steps towards the Capital Markets Union
- 2019: The Commission published a progress report showing that the Commission has tabled all the legislative proposals it committed to in the CMU action plan and mid-term review.
- 2017: The Commission mid-term review updated and complemented the CMU action plan by strengthening existing actions and introducing new measures in response to evolving priorities and challenges.
Overview of CMU Indicators 2023
- Indicator 13: SME use of equity across EU Member States, 2022.
Note: The above study notes cover the main points from the provided text.### Financial Intermediaries
- Financial intermediaries play a crucial role in the economy (Gambacorta et al., 2014)
- They facilitate financial transactions, provide financial services, and improve financial efficiency
Financial Structure and Growth
- The financial structure of an economy affects its growth (Gambacorta et al., 2014)
- A well-functioning financial system is essential for economic growth and development
EU Capital Markets Union
- The EU aims to create a single capital market for all EU member states (EC, 2021)
- The Capital Markets Union (CMU) aims to improve access to finance for Small and Medium-sized Enterprises (SMEs)
- The CMU package includes measures to simplify listing rules for companies, especially SMEs (EC, 2022)
EU Financial Reforms
- The EU has implemented reforms to improve the functioning of its capital markets (EC, 2021)
- The reforms aim to increase funding opportunities for SMEs and improve the overall efficiency of the financial system
Italy's Market Reform
- Italy has been pushing for market reforms to improve its financial system (Financial Times, 19/09/2023)
- However, amendments to the reforms have threatened to complicate the process (Financial Times, 19/09/2023)
Dutch Banking Tax
- Lawmakers in the Netherlands have voted for a higher tax on banks (Financial Times, 23/09/2023)
- The move has led to a decline in shares of Dutch banks
European Commission Resources
- The European Commission provides resources on the Capital Markets Union, including a factsheet and video (EC, CMU)
- The Commission also hosts an EU finance podcast, "Future Finance" (EC, 2021)
International Banking and Capital Markets
- The course "International Banking and Capital Markets" covers the topic of financial intermediaries and their role in the economy (Lesson 2, Monday 25th September 2023)
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