European Investors is a proud partner of the third edition of the “Capital Markets Union Key Performance Indicators” report published today by AFME. EU capital markets will be pivotal in promoting long-term economic growth and a recovery from the severe impacts of the COVID-19 crisis.
The Report
This year’s report arrives during an extremely challenging period for European economies. Engulfed by the challenges of coronavirus, now more than ever Europe needs well-functioning capital markets to channel funding to businesses. Fortunately, the COVID-19 crisis has not significantly disrupted the European cross border funding flows for business and households.
The new report tracks the recent progress of the Capital Markets Union (CMU) project through seven Key Performance Indicators. It also shows how individual member states have progressed on key metrics such as access to equity finance, levels of market integration, transition to sustainable finance and a supportive fintech environment.
Please find the report here.
It is a joint publication with ten trade associations and international organisations representing global and European capital markets stakeholders. December 2020 marks the end of the transition period for the UK’s withdrawal from the EU. This report takes into consideration the performance of capital markets in EU member states and the UK.
This year’s report arrives during an extremely challenging period for European economies. Engulfed by the challenges of coronavirus, now more than ever Europe needs well-functioning capital markets to channel funding to businesses. Fortunately, the COVID-19 crisis has not significantly disrupted the European cross border funding flows for business and households.
Key Findings
In the key findings the impact of the COVID-19 pandemic is perceived:
- Unprecedented levels of capital markets funding supported businesses in the first half of 2020.
- Sustainable bond issuance has increased, with growth of social bonds and record inflow in green investment funds consolidating Europe’s ESG leadership.
- However, an undersized equities market means SMEs continue to rely on bank loans, restricting their opportunities to grow.
- Securitisation volumes continued to fall, limiting banks’ capacity to expand their lending.
- Capital markets union needed more than ever to support long-term recovery.