Cookies

We use cookies to ensure that we give you the best experience on our website. By continuing to browse this repository, you give consent for essential cookies to be used. You can read more about our Privacy and Cookie Policy.


Durham Research Online
You are in:

Market building and the Capital Markets Union : addressing information barriers in the SME funding market.

Schammo, P. (2017) 'Market building and the Capital Markets Union : addressing information barriers in the SME funding market.', European company and financial law review., 14 (2). pp. 271-313.

Abstract

The Capital Markets Union (CMU) is one of the flagship policy initiatives of the Juncker Commission. The Commission’s strategy for realizing a CMU is set out in its White Paper on building a CMU. Besides describing the Commission’s vision of a CMU, the white paper includes an action plan which details the measures that are needed to build a CMU. The aim of this article is to consider the Commission’s measures in one particular area of the action plan. Specifically, this article examines the Commission’s strategy for overcoming information barriers to SME investment. By acting in this area, the Commission’s objective is to facilitate access to finance, but also to diversify sources of funding for SMEs, which are traditionally heavily dependent on bank-based finance. This article evaluates the Commission’s strategy and its prospects of success. After assessing the relevant policy measures, it will argue for a paradigm shift which is based on three pillars: a greater emphasis on market building measures; a greater emphasis on information sharing duties as one mechanism that can help to address information barriers; and a market correcting strategy to dovetail greater market building.

Item Type:Article
Full text:(AM) Accepted Manuscript
Download PDF
(514Kb)
Full text:(VoR) Version of Record
Download PDF
(247Kb)
Status:Peer-reviewed
Publisher Web site:https://doi.org/10.1515/ecfr-2017-0014
Publisher statement:The final publication is available at www.degruyter.com
Date accepted:06 March 2017
Date deposited:01 June 2017
Date of first online publication:23 August 2017
Date first made open access:23 August 2018

Save or Share this output

Export:
Export
Look up in GoogleScholar