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EBF MEMBERS

Joint ABA- EBF Conference Inter-regional Banking Cooperation: Solid Financial Future “ Relevance of the Experience of Financial Integration in Europe to the Eurasian Markets” Guido Ravoet, EBF Secretary General Thursday, 27 May 2010 - Baku, Azerbaijan. EBF MEMBERS.

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EBF MEMBERS

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  1. Joint ABA- EBF ConferenceInter-regional Banking Cooperation: Solid Financial Future“Relevance of the Experience of Financial Integration in Europe to the Eurasian Markets”Guido Ravoet, EBF Secretary GeneralThursday, 27 May 2010 - Baku, Azerbaijan

  2. EBF MEMBERS • 31 national memberassociations: • 27 EU Member States • 4 EFTA countries • 13 Associates

  3. WHAT WE STAND FOR 50 years of sound banking representationWe aim to achieve an integrated European financial services market

  4. Definition of financial integration The market for a given set of financial instruments and/or services is fully integrated if all potential market participants with the same relevant characteristics: • face a single set of rules when they decide to deal with those financial instruments and/or services; • have equal access to the above-mentioned set of financial instruments and/or services; and • are treated equally when they are active in the market.

  5. Benefits of financial integration • More opportunities for risk sharing and risk diversification; • Better allocation of capital; • Improved liquidity of markets and strengthened resilience to shocks; • Smooth operation of payment systems; • Enhanced information and competitiveness; and • Potential for higher growth.

  6. Conditions for success To benefit from financial integration, inter alia,two core conditions must be met: • The completion of all segments of financial integration in the region, and • The stability of this financially integrated region.

  7. Steps towards EU financial integration • 1960s – removal of restrictions on freedom of establishment and freedom of provision of services; • 1987 – Single European Act; • 1990 – Economic Monetary Union (freedom of the movement of capital); • 1999 – Financial Services Action Plan and introduction of the euro; • 2005 – White Paper of Financial Services Policy.

  8. Signs of increasing integration in Europe • Increased transaction volume; • More diversified reserve currency system; • Bond market integration; • Equities market integration; and • Banking sector integration.

  9. Stability and financial supervision • Financial integration and development can increase the efficiency of a financial system, if it is accompanied by adequate legal and regulatory frameworks, corporate governance, market infrastructures, etc. • Financial supervision should assess, in real time: • the build-up of within-market risk, • cross-market contagion, and • linkages between large and complex financial institutions.

  10. Relevance of EU experience for Eurasia • Put sufficient effort into preparation; • Secure joint commitment; • Ensure continuous participation & involvement; • Take into account all regions’ differences; • Monitor integration of various market’ segments; • Secure political stability and sound monetary and fiscal policies.

  11. Per aspera ad astra The path might be challenging – the benefits are worth the effort!

  12. BANKING IN EUROPE Thank you for your attention! EBF 50th Anniversary

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