资本飞轮——驾驭金融景观

© Oliver WymanThis report sheds light on the development of European capital markets and providesrecommendations on how to improve their competitiveness. It reviews progress madetowards the capital markets union (CMU) and gathers insights from various capital marketsparticipants on how to succeed in the comingdecade.The report has been authored byOliver Wymanand is co-developed by the EuropeanBanking Federation (EBF), the European Fund and Asset Management Association (EFAMA),and Federation of European Securities Exchanges(FESE).The findings of this report are informed by interviews with 37 senior industry stakeholders.Their feedback has been synthesized and simplified into a “collective voice” of Europeancapital markets (Exhibit1). We would like to thank all industry stakeholders for their timeandparticipation.Exhibit 1:Collective voice of European capitalmarketsBuy-sideSell-sideMarket infrastructureFocus of the reportCollective voice of European capital marketsSource:Oliver Wymananalysis © Oliver WymanEXECUTIVESUMMARYEuropean capital markets are losing their competitiveness, particularly when compared tothe United States. This threatens to hold Europe back as capital markets are fundamentalto finance innovation, deliver the funding needed for the green and digital transformations,and generate the necessary returns to support an ageingpopulation.Over the past decades, Europe has made significant efforts to develop well-functioning,harmonized, and resilient capital markets. Even as some country-level fragmentationremains, there are common rules, best-in-class regulations, and openness to global inflows.As an example, an investor in France can invest in a Greek company listed in Italy, at areasonable cost, knowing they are getting a fair price, and that the trade will settle reliably.This has been achieved through considerable efforts by regulators and industryalike.Between 2016 and 2022, Europe’s equity capital market capitalization (as a share of GDP)rose from 48% to 66%, whereas in the US it increased from 104% to 157%. Liquidity of equitymarkets (as measured by turnover velocity) decreased from 68% to 52% in Europe, whilst itstayed at 145% in the US over the same timeframe.Europe is not using its capital markets infrastructure to its full potential. Europe has smalleroverall capital pools than the US, with pension, insurance, and household assets amountingto six times GDP in the US, compared to only two to three times GDP in leading Europeaneconomies like France, Germany, and Spain. It also invests far less of those assets throughits capital markets, whether directly or indirectly, resulting in capital markets being overfive times GDP in the US, compared to between one and two times GDP in the same largeEuropean economies. This is driven primarily by statutory pension systems that do notinvest in capital markets, greater risk aversion of retail investors, and lack of appropriateincentives. Yet, countries like Sweden or Denmark show that one can operate leading capitalmarkets within Europe with available capital pools and deployment to capital markets atrates similar to those of theUS.There is good news: Capital markets benefit from scale, and a “flywheel effect” exists.Deliberate demand-side and supply-side steps taken over the next five years can set theconditions that will build more momentum, attract additional investors, and create furtherinvestmentopportunities.To launch the flywheel, it is crucial to activate the demand side of capital markets. Europeneeds to improve retail investors’ access to attractive products and enhance their financialliteracy to foster an investment culture. Also, Europe should incentivize retirement savingsand create tax structures and vehicles conducive to long-term investments. European capitalmarkets need to be promoted internationally, and accessibility for small- and medium-sized companies needs to be improved, to increase their attractiveness to global investors.Ultimately, these different measures must improve investoroutcomes. © Oliver WymanTo maintain a self-reinforcing dynamic, Europe has to continue improving the supplyside, too. Developing an integrated and harmonized single market should continue tobe a primary goal, accompanied by reforming regulations with a balanced approach,maintaining the leadership in sustainable finance and boosting securitization markets.Achieving this will require greater collaboration between public and private sectors andleveraging new opportunities enabled by technology. Preserving a diverse range offunding sources for the economy, both in the short and the long-term, is also a factor ofresilience of the EU capitalmarkets.While further supply-side measures to improve the functioning of capital markets arenecessary, those measures alone are no longer sufficient. Europe needs to grow and deployits pools of available capital. Without an influx of more capital, Europe’s capital markets willcontinue to underperform and productivity gro