The Euro and European Financial Markets

65 Pages Posted: 13 Dec 2005

See all articles by Robert N. McCauley

Robert N. McCauley

Bank for International Settlements (BIS)

William R. White

Independent

Date Written: May 1997

Abstract

This study argues that the introduction of the euro would have a more immediate and direct impact on European bond markets than on European banking markets. The single currency would create a single private yield curve in the near term and could also lead to a more integrated government bond market. While the immediate impact of the euro for banking markets would be limited, the switch over time by European corporations from bank debt to bond debt would come on top of the competitive challenge that European banks already face. The need for banks to adjust raises a number of potential issues for public policy in Europe, some of which may have broader international implications.

Suggested Citation

McCauley, Robert N. and White, William R., The Euro and European Financial Markets (May 1997). BIS Working Paper No. 41. Available at SSRN: https://ssrn.com/abstract=860646 or http://dx.doi.org/10.2139/ssrn.860646

Robert N. McCauley

Bank for International Settlements (BIS) ( email )

CH-4002 Basel, Basel-Stadt
Switzerland

William R. White (Contact Author)

Independent

No Address Available

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