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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (110111)	1/25/2015 12:28:07 PM
From: Haim R. Branisteanu	Respond to of 219460

ECB's Mersch Calls for Deeper Capital Markets in Europe 25-Jan-2015 By Brian Blackstone FRANKFURT--European countries must strengthen their use of the capital markets as a way of steering money to small and medium-sized businesses, European Central Bank executive board member Yves Mersch said Sunday. "A truly integrated capital market would not only benefit the European economy because it would ensure an efficient and location-independent allocation of financial resources. It would also bring with it a greater distribution of risk," Mr. Mersch said in prepared remarks to an exhibition in Osnabrueck, Germany. Mr. Mersch said that, ideally, entrepreneurs should be able to issue bonds in other eurozone countries. However, this market wasn't as fully developed in Europe as it is in the U.S., he said. Small and medium-sized businesses "finance themselves almost exclusively via the domestic banking sector," Mr. Mersch said. "In most countries, however, the majority of loans to enterprises are granted by only a few banks. That makes the economy vulnerable towards, and dependent on, this sector." European authorities should examine ways to create common rules for regulation of capital markets and a shared legal framework for insolvencies, Mr. Mersch said. His comments came three days after the ECB announced it would pump more than one trillion euros ($1.16 trillion) into the eurozone economy by the fall of 2016 through purchases of public and private debt securities. Mr. Mersch's prepared remarks didn't address this policy, known as quantitative easing. Write to Brian Blackstone at brian.blackstone@wsj.com