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In developing its response, the Bank has built on its previous paper entitled ‘A European Capital Markets Union: implications for growth and stability’.
The response sets out policies, grouped under five themes, to address impediments to achieving CMU. These are aimed at capturing a clear set of economic benefits for the whole EU, while seeking to preserve and strengthen economic stability.
They include consideration of measures to improve liquidity of corporate credit markets, increase equity finance for small businesses, address the barriers posed by insolvency regimes and tax and revive securitisation markets.
A successful CMU does not require institutional change, which could well pose risks to financial stability.
The closing date for the consultation is 13 May. It is expected that the European Commission will publish an Action Plan on Capital Markets Union later in 2015.