Skip to main content
Article thumbnail
Location of Repository

"Can European Banks Survive a Unified Currency in a Nationally Segmented Capital Market?"

By Jan A. Kregel

Abstract

The euro was expected to become a substitute for the U.S. dollar as an international currency. However, compromises made during its creation make it a less than perfect substitute in the medium term. Among these compromises was the application of macro convergence and micro diversity in financial markets and supervision at the national level. This now prevents the creation of a unified capital market and places EU banks at a disadvantage when competing with U.S. banks in global markets. There were also peculiarities in the integration process that led to a single currency in the United States that suggest further institutional changes will be necessary.

OAI identifier:

Suggested articles

Citations

  1. (1997). Asset-backed securities in Germany: the sale and securitisation of loans by German credit institutions," Monthly Review ,
  2. (1993). Bank Supervision: The Real Hurdle European Monetary Union,"
  3. (1998). CBOs/CLOs: An Introduction,"
  4. (1996). Consideration of Some Problems Arising in Transition to the Third Stage of European Monetary Union," Banca Nazionale del Lavoro Quarterly Review ,
  5. (1999). Financial Services Action Plan: Progress Report." Federal Reserve System,
  6. (1999). Getting More with Less: Commercial Loan Securitization," Commercial Lending Review ,
  7. (2000). Globalization of Financial Institutions: Evidence from Cross-Border Banking Performance." Forthcoming
  8. (2000). International Banking and Financial Market Developments", BIS Quarterly Review ,
  9. (1999). Mr Noyer briefly outlines the historic evolution of EMU and summarises the experience gained with the euro" speech to the London
  10. (1999). Mr Noyer sheds some light on the international role of the euro," Speech to the Monetary Commission of the European League for Economic Cooperation,
  11. (1999). Mr Stark discusses how the euro will change the world of finance" speech to the FERMA’s Risk Management Forum,
  12. (1998). The EURO and the banking structure within the EMU–entrepreneurial strategies and monetary policy,"
  13. (1997). The Past and Future of Banks , Ente Einaudi:
  14. (1998). The role of the euro in the international monetary system – reserve currency, trade currency and investment currency," speech presented at the city of Frankfurt Euro Symposium, Frankfurt, 5 February, European Central Bank ( –––,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.