The impact of the Single Euro Payments Area on European corporates

The creation of Single Euro Payments Area is the most important change affecting the financial services market in Europe, after the launch of the single currency. The project extends upon all payment industry players. The purpose of this paper is to highlight the implications of SEPA initiative on European corporate bodies, in terms of challenges, opportunities and benefits, and how the associated advantages can be obtained as a result of a solid collaboration with the partner banks and the effective implementation of the SEPA standards and products. Customers, both consumers and corporations will greatly benefit of the whole range of new opportunities offered, as the project promotes the efficiency, competition and innovation.Single Euro Payments Area; corporate bodies; financial crisis; standardization

Perspectives on Single Euro Payments Area adoption in the light of the financial crisis

The scope of this article is to point out how the present financial crisis is affecting the European payments landscape and the Single Euro Payments Area implementation. The current unpredictable and very challenging market situation has not fundamentally changed the fact that payment services need to continue modernization in order to become more flexible, agile and adapt in order to comply with its important purpose in society. SEPA is needed to ensure the new modern payment platform that can enable Europe to move beyond basic services, increase payments efficiency, embrace innovation and integrate further services in the trade process. Today, the turbulent market conditions could have the effect of accentuating rather than reducing the business case imperative and momentum to achieving full SEPA implementation.Single Euro Payments Area; credit crunch; corporate bodies; cash management; financial turmoil

SINGLE EURO PAYMENTS AREA AND ITS IMPLICATIONS ON THE EUROPEAN SMALL AND MEDIUM-SIZED ENTERPRISES

The scope of this article is to discuss the implications of the Single Euro Payments Area from the perspective of the European SMEs. The current unpredictable and very challenging market situation has not fundamentally changed the fact that payment services need to continue modernization in order to become more flexible, agile and adapt in order to comply with its important purpose in society.SEPA is needed to ensure the new modern payment platform that can enable Europe to move beyond basic services, increase payments efficiency, embrace innovation and integrate further services in the trade process. European Small and Medium-sized Enterprises see SEPA see SEPA as an important step towards the completion of the internal market, but such a major initiative has to be well planed, must meet the practical needs of enterprises and provide, at least in the long run, positive incentives for all market participants.Single Euro Payments Area, payments landscape, small users, Payment Services

European corporate bond market integration: lessons from EMU

Abstract: The scope of this article is to point out the features of European corporate bond market, in particular its development since the euro introduction. We structured our paper on chapters that present its economic importance, the implications of the common currency in respect to its growth and the level of integration in the present context. This market, including the debt securities issued by non-financial corporations, non-monetary financial corporations and monetary financial institutions, is economically important, as it contributes to the allocation of funds to their most profitable uses. Its rapid growth since the introduction of the euro can be explained by developments in economic activity, the costs of issuance and mergers &acquisitions-related activity. The adoption of the common currency had a direct and permanent effect on debt securities issued by non-monetary financial corporations. However, the use of corporate bonds at the euro area level is not uniform across countries. Country-specific factors continue to matter, despite the fact that financial markets are gradually becoming more integrated.corporate bond market; euro; financial integration; economic importance; market segmentation.

European stock market integration under EMU

The aim of the present paper is to highlight the degree of European stock market integration. We structured our research on two sections obeying the following order: the first one presents some considerations of the academic literature studying the field and the second analyses the main financial indicators of stock market integration, namely venture capital, price based and quantitative indicators. Our concluding remarks show that regional euro-integration has proceeded more quickly than worldwide integration. At the same time, the level of the variance explained by common factors reveals that local shocks are still important. Quantity-based measures of euro-area equity market integration point out to a rising degree of integration. Since the introduction of the common currency Eurozone (EZ) investors have partially reallocated their equity portfolio from domestic holdings to holdings elsewhere within the EZ.financial integration; stock market; consolidation; home bias; economic and monetary union.

Analyzing Single Euro Payments Area effects under the international financial crisis

The scope of this article is to underline the overall economic impact of Single Euro Payments Area adoption upon the major players in the payments industry. Our study is structured on chapters that present the implications of SEPA on the banking industry, the project’s consequences in respect to European corporate bodies and its effects on small and medium-size enterprises in the context of the international financial crisis. SEPA is needed to ensure the new modern payment platform that can enable Europe to move beyond basic services, increase payments efficiency, embrace innovation and integrate further services in the trade process. Today, the turbulent market conditions could have the effect of accentuating rather than reducing the business case imperative and momentum to achieving full SEPA implementation.Single Euro Payments Area; banks; corporate bodies; small and medium-sized enterprises; financial crisis.

Measuring European financial market integration. A literature review

The purpose of this paper is to highlight the level of European financial integration, based on the academic literature analyzing a comprehensive set of indicators and methodologies. We structured our research on sections that present a theoretical approach of the instruments that will be used in order to evaluate the progress of financial integration and their limits; the evolution of this process from EMU to the global crisis and beyond by studying financial integration indicators according to Adam et al. (2002) classification, and some considerations about the developments in the European Union new member states. Our concluding remarks outline the widespread use of quantitative and price-based indicators, as well as the different degree of integration from one financial sector to another.financial integration; common currency; the law of one price; beta convergence; home bias

The implications of single monetary policy in sustaining European financial integration

The aim of this paper is to illustrate the general implications of single monetary policy in sustaining European financial integration. Our study is structured on two main sections; the first one presents the importance of money market integration for the common policy and the seconds analyses the transmission mechanism functioning under financial distress. An efficient and integrated money market is essential for a sound monetary policy, given that it provides an even distribution of central bank liquidity and a homogeneous level of short-term interest rates in the entire space of the common currency. If monetary policy transmission mechanism has been irreversibly affected by the international crisis, it is still premature to determine.single policy; transmission mechanism; financial distress; pass-through process

An overview of euro adoption challenges: the case of Romania

Abstract. The scope of this paper is to highlight the Romanian strategy towards the euro adoption. We structured our article on sections that cover four main research directions. The first one illustrates the interlinkages between nominal and real convergence; the second presents a comparative analysis Romania-Slovakia; the third one points out the possible scenarios ex post common currency’ introduction and the fourth underlines the necessity of reforming the euro area entry criteria. We conclude by saying that the decision to join the Eurozone should not be taken only in terms of the ability to achieve the nominal convergence criteria, but also in relation to the progress of real convergence phenomenon. In their absence, the economy will become peripheral, less flexible and unable to manage and eliminate the shocks affecting it.economic and monetary union; convergence criteria; optimum currency area; catching-up process; structural reforms; financial system

The implications of European retail banking integration on small and medium-sized enterprises financing. An overview

Considering the last few years, the European Union (EU) has became one of the most competitive and integrated economic regions of the world, following a rapid pace of change as a result of an inspired series of initiatives. The harmonization of the banking and other financial services legislation as component of the EU’ Single Market, the creation of the European Economic and Monetary Union (EMU), alongside the ongoing implementation of the Financial Services Action Plan (FSAP) represent the central drivers of financial integration and the set of elements that have helped reducing the barriers to cross-border trade in banking services. The process of deregulation is another element that facilitated the environment in which technology and other bank strategic determinants have become increasingly important. The scope of the present paper is to analyze the implications of a higher degree of banking integration on firms financing options and choices. This paper is composed of two main parts. The first part focuses to the determinants of European banking integration, analyzing this process since the banking system represents the main financial channel for both the small and medium-sized enterprises and households. The second part concentrates on the effects of banking integration on considered entities’ financial constraints. The concluding remarks outline that retail bank integration has an ambiguous implication on SMEs’ access to credit.retail banking integration; SMEs; firms’ financing; financial constraints; deregulation