Download publication

Working Paper

The changing landscape of financial markets in Europe, the United States and Japan

We compare the structure of the financial sectors of the EU27, Japan and the United States, looking at a set of 23 indicators.

By: and Date: March 18, 2013

We compare the structure of the financial sectors of the EU27, Japan and the United States, looking at a set of 23 indicators.

We find a large variation within the European Union in the structure of the financial sector. Using principal components analysis, we identify robust groups of EU countries. One group consists of the eastern European members that entered the EU more recently.These have substantially smaller financial sectors than the old member states. A second group can be classified as market-based (MBEU) and the third group is more bank-based (BBEU).

We compare US, MBEU, BBEU, Eastern EU and Japan with the following main results. First, the groups within Europe are geographically related. Second, in many indicators, MBEU countries are closer to the (market-based) US, while BBEU countries more closely resemble Japan. Paradoxically, however, market-based EU countries also have large banking sectors. Banks in market-based countries have larger cross-border assets and liabilities, and derive a larger fraction of their income from fees, rather than interest income, than banks in bank-based countries. Finally, for most indicators, the ordering of groups of countries is quite stable over time, but while the crisis has had no impact on the relative ordering of the groups, it has slightly widened the gap between the US and all EU regions insome respects. We also find that during the crisis, substitution between market-based and bank-based sources of finance occurred in the US, and to a lesser extent in MBEU and BBEU countries.

Download Publication

The changing landscape of financial markets in Europe, the United States and Japan

Working Paper

The changing landscape of financial markets in Europe, the United States and Japan

2h read (61 pages)

Download publication

Topics

Tags

Comments

Read article More on this topic

Blog Post

Ashoka Mody

Delhi’s children deserve quality education

Money has not held up educational advancement in Delhi or in India more generally. Delhi’s education budget has risen steadily. And the worry is that the increased budget will once again be hijacked by glamorous but wasteful projects, including in higher education.

By: Ashoka Mody and Ritika Katyal Topic: Global Economics & Governance Date: August 4, 2015
Read article More on this topic More by this author

Opinion

Alicia García-Herrero

Europe must wake up before Iran falls into the arms of Russia and China

European leaders seem to have been caught somewhat off-guard by the Iran deal. The Greek saga alone could explain this. The problem is that other competitors —Russia and China— are one step ahead.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: August 3, 2015
Read about event

Upcoming Event

1 
Oct
2015
13:45

12th Asia Europe Economic Forum (AEEF)

This year's conference is entitled "Global Governance of Public Goods: Asian and European Perspectives".

Speakers: Chong-en Bai, Laurence Boone, Björn Conrad, Min Chang, Jean-Francois Di Meglio, Andreas Esche, Joseph Francois, Kiyoto Ido, Sébastien Jean, Masahiro Kawai, Pascal Lamy, Klaus Masuch, Yung Chul Park, Innwon Park, Zhang Yan, Guntram B. Wolff, Mitsutsune Yamaguchi and Naoyuki Yoshino
Read about event More on this topic

Upcoming Event

5 
Oct
2015
09:00

Secular Stagnation in Europe and Japan

This is the 3rd conference in a series of events jointly organised by Graduate School of Economics, Kobe University and Bruegel

Speakers: Toshiki Jinushi, Guntram B. Wolff, Coen Teulings, Natacha Valla, Yoichi Matsubayashi, Masahiko Yoshii, Rainer Münz, Paul Swaim, Atsuko Ueda, Grégory Claeys, Naoyuki Yoshino, Juan F. Jimeno, Ryuzo Miyao, Xavier Ragot and Philipp Hartmann Topic: Global Economics & Governance
Read article More by this author

Blog Post

Alicia García-Herrero

China's stock market falling off a cliff: Why, and why care?

Spurred by interventions from Chinese authorities, the Chinese stock market was rallying. However, the recent sell-off has wiped out one third of China’s stock market value. Why is this happening and what does it mean for the global economy?

By: Alicia García-Herrero Topic: Finance & Financial Regulation, Global Economics & Governance Date: July 9, 2015
Read article More on this topic More by this author

Blog Post

Alicia García-Herrero

China’s outward foreign direct investment

China’s outbound foreign direct investment (ODI) may have exceeded inbound foreign direct investment (FDI) for the first time in 2014, according to the Ministry of Commerce of the People’s Republic of China (MOFCOM).

By: Alicia García-Herrero Topic: Global Economics & Governance Date: June 28, 2015
Read article More on this topic More by this author

Blog Post

Alicia García-Herrero

China pushing 'build now, pay later' model to emerging world

China will be the largest contributor to the Asian Infrastructure Investment Bank, which aims to become the first global institution headquartered in China. While much of the attention has centered on China's motives, as well as how the initiatives would challenge the status quo, more interesting questions are whether emerging economies will benefit and what kind of construction-led development model is to come with them.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: May 18, 2015
Read article More on this topic More by this author

Blog Post

Jérémie Cohen-Setton

The Trans-Pacific Partnership

What’s at stake: U.S. Congressional leaders have recently introduced a bipartisan bill to renew the power of the president to negotiate trade agreements. If the Senate passes the bill, this is expected to inject momentum in regional trade negotiations with both Europe (TTIP) and Asia (TPP).

By: Jérémie Cohen-Setton Topic: Global Economics & Governance Date: April 27, 2015
Read article More on this topic More by this author

Opinion

Jim O‘Neill

Pessimistic views of China’s economy are unconvincing

In late 2001, I first used the phrase BRIC to discuss the likely rise of Brazil, Russia, India and China as growing shares of the world economy and outlined a number of scenarios in which it seemed pretty inevitable that their share would rise sharply by the end of that decade. 

By: Jim O‘Neill Topic: Global Economics & Governance Date: April 7, 2015
Read about event More on this topic

Past Event

Past Event

Competition Policy: the Japanese experience

Competition Policy

Topic: Innovation & Competition Policy Date: March 24, 2015
Read article Download PDF More on this topic More by this author

Working Paper

The effort to stabilise the financial system in Japan: an outline and the characteristics of the programme for financial revival

The effort to stabilise the financial system in Japan: an outline and the characteristics of the programme for financial revival

This paper provides an overview of the Programme for Financial Revival announced in October 2002 in Japan. The programme aimed to dramatically reduce the large amount of non-performing loans that remained until the end of the 1990s.

By: Yoichi Matsubayashi Topic: Global Economics & Governance Date: March 18, 2015
Read article More on this topic More by this author

Blog Post

Jim O‘Neill

Realizing the Indian Dream

It is probably too early to say with certainty that India will soon take its place as the world's third largest economy, behind China and the United States. But, given that India's investment climate seems to be improving, that moment might not be too far away.

By: Jim O‘Neill Topic: Innovation & Competition Policy Date: March 17, 2015
Load more posts