02189cas a2200277 a 4500 AALejournalIMF019299 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498313278 2617-6750 BD-DhAAL BD-DhAAL Bhatia, Ashok. A Capital Market Union for Europe / Ashok Bhatia, Srobona Mitra, Anke Weber, Shekhar Aiyar. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (30 pages) Staff Discussion Notes <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This note weighs the merits of a capital market union (CMU) for Europe, identifies major obstacles in its path, and recommends a set of carefully targeted policy actions. European capital markets are relatively small, resulting in strong bank-dependence, and are split sharply along national lines. Results include an uneven playing field in terms of corporate funding costs, the rationing out of collateral-constrained firms, and limited shock absorption. The benefits of integration center on expanding financial choice, ultimately to support capital formation and resilience. Capital market development and integration would support a healthy diversity in European finance. Proceeding methodically, the note identifies three key barriers to greater capital market integration in Europe: transparency, regulatory quality, and insolvency practices. Based on these findings, the note urges three policy priorities, focused on the three barriers. There is no roadblock-such steps should prove feasible without a new grand bargain. Mode of access: Internet Aiyar, Shekhar. Mitra, Srobona. Weber, Anke. Staff Discussion Notes; Staff Discussion Notes ; No. 2019/007 Full text available on IMF http://elibrary.imf.org/view/journals/006/2019/007/006.2019.issue-007-en.xml IMF e-Library