1. Research
  2. Products & Topics
  3. Region
  4. Europe

Euro area money market funds: turning the corner?

July 13, 2015
Region:
Analyst:
Euro area money market funds have returned to growth, according to the latest ECB data. By March 2015, they managed EUR 1,032 bn in assets, up by EUR 120 bn from a year earlier. A similar surge in assets was last seen before the financial crisis, which marked the beginning of a prolonged decline. Amazingly, the upward trend in assets occurred while money market yields hit record lows, especially for the euro. So what is really behind MMF asset growth? [more]

More documents about "Europe"

167 (91-102)
December 18, 2015
Region:
91
With 2016 just around the corner, the outlook for the European banking sector in the new year looks more promising than it has been for almost a decade. Growth, though meagre, has returned to many business segments and regions. Despite unrelenting pressure on interest margins, total revenues are expanding. Asset quality is improving and profits in 2015 may be the highest since 2007. The biggest questions surround the future path of regulation (where another major round of tightening could paradoxically threaten the recently hard-won stability) and of the European and global economy (which has repeatedly and substantially surprised to the downside in recent years) in 2016. [more]
December 14, 2015
Region:
92
The quality of the business environment is a key driver of countries’ economic development. “Good rules” foster market functioning, increase efficiency, and encourage entrepreneurial activity. The quality of the business environment affects firms’ activities and success. It also matters for economies’ competitiveness, their attractiveness for investments and ultimately growth (prospects). [more]
November 11, 2015
Region:
93
The single market is and remains the centrepiece of Europe’s economic architecture – but current single market arrangements are struggling to keep pace with the digital economy. With digitisation advancing, adapting single market rules becomes increasingly important to ensure its functioning and digital technologies could help unlock some of the remaining single market benefits. The European Commission has made the digital single market (DSM) a key priority, put forward a dedicated strategy in May 2015 and recently announced further steps to strengthen the internal market. Big expectations have been attached to the DSM – yet the gains associated with it are unlikely to materialise automatically. Will Europe’s digital strategy succeed? [more]
November 2, 2015
Region:
Analyst:
95
The creation of a European Capital Markets Union (CMU) aims to establishing a single market for capital to complement bank financing. In this paper, we make a quantitative assessment of the European stock, bond and securitisation markets to look at the CMU’s potential. Our results reveal that liquidity and IPO trends in European stock markets are similar to those in the US. However, market integration has slowed down in recent years, which the CMU could counter by harmonising company, securities and insolvency laws. European corporate bond markets have become a notable alternative to bank lending but their investor base remains restricted, which the CMU should address. The securitisation market in Europe has performed well throughout the crises and its revival is a sine qua non for lending to regain traction, especially to SMEs. The CMU should thus target a less punitive regulatory treatment for this market segment. [more]
August 21, 2015
Region:
96
After literally seven lean years, the European banking industry’s recovery from the financial crisis is now in full swing. Profits are at their highest level since 2007, revenues are growing across the board (helped by favourable currency effects) and loan losses are falling. Banks are also expanding business volumes. Capital ratios are on average substantially above Basel III requirements, though uncertainty has increased recently due to a pending further regulatory tightening (“Basel IV”). [more]
August 19, 2015
Region:
97
Reform of deposit guarantee schemes (DGS) in the EU has followed a gradual approach. The latest reform established common requirements on financing for national schemes but funds remain separate. The debate about the future of DGS has been revived recently, though. The five presidents' report on completing Europe's Economic and Monetary Union put DGS reform back into the larger reform discussion and identified deposit insurance as one of the areas of the Banking Union still pending completion. While joint deposit insurance may seem a rather long-term option, several short- and mid-term suggestions to complement DGS have been raised. They put an emphasis on adapting the current setup with a view to increase back-up financing capacity of individual schemes. Ideas include i) strengthening the network of DGS and possibilities for bilateral lending, ii) establishing a reinsurance scheme, iii) developing a common fiscal backstop to national DGS. [more]
August 13, 2015
Region:
Analyst:
98
In March 2015, the 28 European Heads of State and Government committed themselves to creating an Energy Union. In principle, the commitment to even stronger cooperation on energy and climate issues is a step forward, even though the decisive impetus came from grave concerns about potential gas supply disruptions as a result of the conflict between Russia and Ukraine. The current discussion also indicates that the Energy Union should initially focus on the further improvement of natural gas supply in Eastern Europe. The further development of infrastructures and markets for grid-based energies are likely to become target areas as well. By contrast, contentious topics such as the nuclear phase-out in Germany and country-specific subsidy programmes for renewable energies are unlikely to be a target area yet. We thus expect an incremental policy of small steps, i.e. by no means a rapid and radical transformation of the European energy sector as a whole. [more]
August 7, 2015
Region:
99
It is the classical dilemma of any currency union that a single monetary policy cannot possibly be appropriate for everybody if members are at very different stages of the business cycle. To get a feel for the scale of monetary (mis-)alignment, we calculate central bank rates as implied by a modified Taylor rule. [more]
July 31, 2015
Region:
100
As a key element of the new reform agenda for Greece stipulated at the latest eurozone summit, privatisation has become a major issue for the southern European country. However, privatisation should be a topic for other governments in the euro area, too, given the high public debt in many countries. Nevertheless, a look at the privatisation policies in selected countries shows different priorities. [more]
June 11, 2015
Region:
102
European banks had a successful start into 2015. Business activity improved, asset quality did so as well and profitability rose again, as the rebalancing of the industry made further progress. The ECB’s new large-scale market interventions helped strengthen sentiment in financial markets, and contributed to the continuing decline in the euro exchange rate – which on balance may have been beneficial for banks. [more]
2.4.6