Template-Type: ReDIF-Paper 1.0 Author-Name: Lannoo, Karel Author-Name: Parlour, Richard Title: Anti-Money Laundering in the EU: Time to get serious Abstract: Between 2 and 5% of global GDP is thought to be laundered every year, whereas only 1.1% is recovered. Anti-money laundering encompasses combating tax avoidance, the financing of terrorism, human (and human organ) trafficking, state-sponsored and corporate bribery, and the proceeds from drug-trafficking and other illegal activities. Banks and other �obliged entities� complete thousands of suspicious transactions reports on a daily basis yet only a handful are followed up on by financial intelligence units (FIUs). This could be due to lack of capability, capacity or even political direction. Meanwhile, the breadth and means to launder money have also increased, facilitated by technological progress. Unfortunately, the current anti-money laundering regulations have brought little success. Length: 50 pages Creation-Date: 2021-01 File-URL: https://cdn.ceps.eu/wp-content/uploads/2021/01/TFR_Anti-Money-Laundering-in-the-EU.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:31980 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Gagliardi, Pietro Title: Key Findings from the ECRI Statistical Package 2020 Abstract: Key findings from the ECRI Statistical Package 2020 � In 2019, loans to EU households and non-financial corporations (NFC) increased by 2.5%. � For the fifth year in a row, total loans in non-euro area countries grew more than loans in euro area countries. � Compared to 2018, the growth rate of total loans in 2019 increased from 1.9% to 2.4% in the euro area, and in non-euro area countries the growth rate was from 2.8% to 3.7%. � Between 2018 and 2019, household loans in EU increased by 3.5% and non-financial corporations (NFC) loans increased by 1.2%. � Total household loans grew most in Bulgaria (+13.5%), Hungary (+12.3%), Malta (+10.0%), Poland (+8.1%), Slovakia (+8.0%) and Lithuania (+7.8%). The largest contractions were registered in Greece (-8.6%), Cyprus (-5.2%). � Hungary (+8.1%), Austria (+6.7%), Luxembourg (+6.7%), Finland (+6.6%), Bulgaria (+5.9%) and Germany (+5.7%) were among the member states with the largest growth rates in NFC loans. Significant reductions were registered in Greece (-11.8%), Cyprus (-9.0%), Italy (-7.0%) and Ireland (-5.6%). � Since the Covid-19 outbreak the transaction flows and outstanding amount of loans to non-financial corporations have increased significantly, while household loans transaction flows have fallen and loan growth stabilised. About the package The ECRI Statistical Package 2020 provides data on outstanding credit granted by monetary-financial institutions (MFIs) to households and non-financial corporations (NFCs) for the period from 1995 to 2019. Credit volumes and annual growth rates are broken down by sector and credit type to enable detailed insights into credit market developments over time and across countries. It comprises 45 countries including the EU Member States, UK, EU candidate and EFTA countries as well as the US, Canada, Japan, Australia, Russia, Mexico and Saudi Arabia. Creation-Date: 2020-10 Length: 11 pages File-URL: https://cdn.ceps.eu/wp-content/uploads/2020/10/KeyFindingsECRI2020.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp30475 Template-Type: ReDIF-Paper 1.0 Author-Name: Willem Pieter De Groen Title: The impact of EU price rules: Interchange fee regulation in retail payments Abstract: Debit and credit cards have gradually increased in importance as instruments for retail payments. This has prompted anti-trust authorities at both national and European levels to investigate and limit the interchange fee-based revenue model of four-party schemes. These moves were followed in 2015 by the introduction of the Interchange Fee Regulation (IFR), which introduced price rules to nurture a competitive, innovative and secure payments environment for all stakeholders. The IFR caps the interchange fees on consumer debit and credit cards and prohibits restrictions on co-badging and certain requirements to honour all cards for merchants. This paper assesses the impact of the IFR. Based on a literature review and data analysis, it concludes that the IFR has led to a drop in interchange fees � in some cases below the maximum defined in the legislation in all EU member states. The decrease in the interchange fee is largely reflected in lower charges for merchants, although the reduction is � at least partially � offset by higher scheme fees charged by international four-party card schemes and by higher fees for cardholders. The policy recommendations aim to increase transparency for a fuller understanding of the functioning of the market and to enhance competitiveness in both the market for card payments and other payment instruments. Length: 24 pages Creation-Date: 2020-02 File-URL: https://cdn.ceps.eu/wp-content/uploads/2020/02/CEPS-ECRI_IFRImpact.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:26316 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Ayoub, Janna Title: Consumer Credit, Digitalisation and Behavioural Economics: Are new protection rules needed? Abstract: In 2008, the Consumer Credit Directive (CCD) was significantly changed by adopting a targeted harmonisation approach that aimed at standardising information disclosure duties and imposing similar rights all around the EU. Ten years later, this new version of the CCD has increased consumer protection in some EU countries. At the same time, however, it has had limited impact on the emergence of a single market for consumer credit, as the volume of cross-border sales remains marginal. In this context, the European Commission recently launched an evaluation of the CCD to assess its interplay with other rules and whether its current provisions are still fit for purpose. Over the last decade, consumer credit markets have been transformed markedly. On the one hand, the fast digitalisation of the sector has contributed to new services, new processes and new providers. On the other hand, expanding knowledge of the behavioural biases of consumers has been slowly challenging the status quo of how authorities should design consumer protection rules. Both phenomena present opportunities that should be exploited by a possible new CCD, as well as risks that must be addressed, as summarised in the following recommendations: - Overall, a possible revision of the CCD should ensure that the new rules are anchored in the Digital Single Market Strategy. - The new CCD should contribute to unleashing the potential of digital tools in order to overcome barriers to cross-border sales of consumer loans. - The revision should place some emphasis on digital interoperability, data privacy and the extension of the scope of the CDD to new fintech business models. - In order to help mitigate the negative effects triggered by specific behavioural biases, personalised rather than standardised information disclosure should be encouraged. - Given that the digital world is likely to accelerate the average speed of consumer decisions, the right of withdrawal should be maintained. The right of early repayment should be clearly communicated, as the decision to reimburse earlier often works against some key behavioural biases. Length: 16 pages Creation-Date: 2018-09 File-URL: https://www.ceps.eu/system/files/ECRI%20PB%20No%209_SB_ConsumerCredit_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:13831 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Gagliardi, Pietro Title: Key Findings of the ECRI Statistical Package 2018 Abstract: The ECRI Statistical Package 2018 reveals that total lending to households and Non-Financial Corporations (NFCs) in the EU increased in real terms in 2017, following the trend reversal in 2015 and positive growth in 2016. Despite this, the level of lending still falls short of the pre-crisis 2007 level for the EU28, the EU15 and the EA19, but not for the NMS (which are now above the 2007 level). At a more granular level, lending to households has experienced (small) positive real growth in 2017, but generally at a slower pace than in 2015 and 2016. Lending to households can be disaggregated in consumer credit, housing loans, and other loans. Both consumer credit and housing loans follow a similar pattern to total household lending: they have increased in 2017, but with smaller magnitudes than in 2016. Growth in total lending to households, consumer credit and housing loans in the EU28 was mainly driven by France, Germany and the Netherlands. 2017 has been a crucial year for loans to NFCs: for the first time since 2010, the EU28, the EU15 and the EA19 have experienced positive real growth in outstanding loans to NFCs, bringing to an end a seven-year contractionary period. While a positive sign, caution is appropriate as positive growth remains weak and limited to few countries. Germany, France and Sweden, in particular, are the countries that contributed the most to the trend reversal. This paper analyses all of the above in further detail, providing the reader with a granular representation of European credit market developments in 2017. The discussion breaks down the data by country group, by individual countries, by currency, and by maturity. Furthermore, lending is analysed in terms of real levels, real year-on-year growth, real cumulative growth, per capita level, as a percentage of gross disposable income, and as a percentage of GDP. Each section also includes a discussion of sigma and beta convergence in relative measures of credit within country groups. Finally, the paper concludes with a regression analysis of the drivers of European lending markets, using data for the 1995-2017 period. Creation-Date: 2018-08 Length: 28 pages File-URL: https://www.ceps.eu/system/files/ECRI%20PB%20No%209_SB_ConsumerCredit_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp13804 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Krause, Simon Title: Cybersecurity in Finance: Getting the policy mix right! Abstract: In the midst of several large cyberattacks in 2017, the European Commission adopted its multi-sector cybersecurity package in September of that same year. Whereas this initiative can be expected to contribute to strengthening the cyber-resilience and response of EU financial firms, several policy issues and unanswered questions remain. In order to analyse the issues that are considered to be relevant to financial fields (retail banking, corporate banking, capital markets, financial infrastructure and insurance), CEPS-ECRI organised a Task Force between September 2017 and May 2018 with a group of experts from the financial industry, tech industry, national supervisors and European institutions, as well from a consumer association and a law firm. In this Final Report, the Task Force members identify the following nine policy issues that need to be further addressed in order to bolster the financial industry�s cyber-resilience against current and future threats. Main policy recommendations 1. Convergence in the taxonomies of cyber-incidents is needed. 2. The framework for incident reporting needs to be significantly improved to fully contribute to the cyber-resilience of financial firms. 3. Authorities should assess how and to what extent the data held by the centralised hub should be shared with supervisors, firms and clients. 4. Ambitious policies are needed to develop consistent, reliable and exploitable statistics on cyber-trends. 5. Best practices for cyber-hygiene should be continuously enhanced by regulators and supervisors. 6. The European Cybersecurity Certification Scheme needs to be strengthened to contribute better to cybersecurity, cyber-risk management and capability. 7. In order to improve the processes of attribution and extradition, the reinforcement of cross-border cooperation and legal convergence remains a priority, both within the EU and more widely. 8. Best practices in remedies in case of cyberattacks need to be further encouraged. 9. Policy-makers should further assess the pros, cons and feasibility of creating an emergency fund in case of large cyberattacks. Length: 52 pages Creation-Date: 2018-06 File-URL: https://www.ceps.eu/system/files/TFRCybersecurityFinance.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:13703 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: Cost and Value in Banks: A model fit for the digital era? Abstract: Retail and corporate banks have to cope with legacy issues that impede their efficiency and reactivity. In particular, different norms within groups are still used for accountancy, cost allocation systems and product hierarchies. Also, the share of IT spending used to maintain existing IT systems remains high. Yet, many of the banks� activities are being rapidly digitalised, especially in consumer finance. The potential of data analytics is being gradually unleashed at different stages of the products. In that context, regulators should favour the digitalisation of banks while alleviating related risks. They should also build on this mutation to raise consumers� welfare and the competitiveness of non-financial corporations (NFCs). Among these measures, the treatment of certain software expenses in the new Capital Requirements Regulation could be reassessed. Also, authorities should better foresee the cost of IT changes needed for implementing new rules and the indirect impact of those rules on banks� clients, especially SMEs. Further convergence in know-your-customer processes for NFCs is needed. The preventive approach in credit should be generalised to all clients. Finally, labour and education policies are key to ensuring a sufficient supply of IT skills. Length: 63 pages Creation-Date: 2018-04 File-URL: https://www.ceps.eu/system/files/ECRI_RR20_SB_CostAndValueIinBanks.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:13577 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: Dynamic Currency Conversion and Consumer Protection: Finding the right rules Abstract: The growing choice of payment services should be good news for consumers, but only if they have complete information about the products being sold and the prices charged by each firm. Length: 6 pages Creation-Date: 2018-03 File-URL: https://www.ceps.eu/system/files/ECRICommentaryNo22_SB_DynamicCurrencyConversion.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:12941 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Melches, Carolina Raquel Title: Key Findings of the ECRI Statistical Package 2017 Abstract: Are households driving Europe�s economic recovery? The total outstanding credit from MFIs to households and NFCs in 2016 showed an increase of 0.7% in the EU28 compared to the previous year. Private credit to households has entered stable growth for the second consecutive year, which suggests that private credit markets are recovering from the implications of the economic and financial crisis in 2008. Among credit types, consumer credit experienced the strongest annual growth, while housing loans remained on a slower but steady growth path. The country group of new member states that acceded in and after 2004 constitute an exception, with a housing loan growth more than 2.5 times higher than that of the entire EU28. Whereas private credit continues to grow across all loan types, the growth rate magnitudes are consistently smaller than the 2015 growth rates. Diverging trends between private and corporate credit on European credit markets continue as credit to NFCs experiences a contraction for the eighth consecutive year, albeit with a smaller magnitude than in the previous year. Annual growth rates at country level show a much smaller variation on a range half as wide as in the preceding year, suggesting that credit markets for NFCs are stabilising and could soon enter recovery as well. With the exception of Italy, the PIIGS continue to exhibit negative growth rates across all credit types. Notwithstanding the signs of recovery conveyed by annual growth rates, outstanding amounts across all loan types continue to be well below pre-crisis levels, with the exception of housing loans. Length: 11 pages Creation-Date: 2017-08 File-URL:https://www.ceps.eu/system/files/Key%20Findings%20from%20the%20ECRI%20Statistical%20Package%202017.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:12941 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: Recent Trends and Developments in European Mortgage Markets Abstract: In this ECRI Commentary, Sylvain Bouyon, Research Fellow at ECRI and CEPS, offers an up-to-date analysis of recent trends and developments in European mortgage markets. Ten years ago, persistent dysfunctionalities on mortgage markets inherited from the previous decade greatly contributed to the largest financial crisis in half a century. Since then, significant deleveraging processes have been observed in some EU markets, such as Ireland, Portugal and Spain, where the ratios of outstanding residential lending to household disposable income have contracted markedly. In these economies, the 2016 volumes recorded for both outstanding and gross residential lending were much below 2007 levels, although a timid recovery could be observed in recent years. By contrast, the volume of mortgage activities moved around significant upward paths in Belgium, France, Germany and Sweden, and stagnated somewhat in the Netherlands and Denmark. In terms of products, excluding Sweden, the share of adjustable-rate mortgages (ARMs) for gross residential lending has been moving along downward trends in all the analysed mortgage markets. And these downward trends have deepened in all countries (excluding the UK and Sweden) in the last three years. As a result, the aggregate ARM market share contracted markedly in the last decade. Whereas fluctuations in current spreads between ARM rates and fixed-rate mortgage (FRM) rates appeared overall to be a powerful driver behind the ARM market share over the last decade, this impact seemed to trail off in the last four years. In the current context where FRMs are considered to be historically low, many households are likely to anticipate increases in fixed interest rates on the foreseeable horizon, resulting in greater preference for FRMs, no matter the level of spreads. Other factors related to mortgage and household characteristics could also impact on this preference for FRMs: the average amount of mortgages, evolution of household income, etc. Finally, some encouraging signs of convergence in recent years in spreads, ARM market shares as well as ratios of household residential debt to disposable income could contribute somehow to reinforcing the consistency and efficiency of euro monetary policy. Length: 10 pages Creation-Date: 2017-05 File-URL:https://www.ceps.eu/system/files/No%2021%20SB_Trends%20in%20Mortgage%20Markets.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:12596 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: The Future of Retail Financial Services: What policy mix for a balanced digital transformation? Abstract: In recent years, the digitalisation of retail financial services � retail payments, current/savings accounts, consumer/housing credit, car insurance, property insurance and health insurance � has accelerated significantly. While policy-makers are gradually creating the necessary conditions to strengthen this digital transformation, there remain numerous policy issues and unanswered questions to resolve. Against this background, CEPS-ECRI formed a Task Force to explore four specific core questions: What type of level playing field is needed to ensure a successful transition to the digital transformation? What are the opportunities and risks related to big (alternative) data and increasingly sophisticated algorithms? What kind of regulatory framework is the most appropriate for pre-contractual information duties in a digital era? How can the regulatory framework for digital authentication be improved? This report presents the findings of the Task Force, based on discussions among the members, led by the Chairman Kim Vindberg-Larsen, a FinTech entrepreneur. These findings are substantiated and elaborated via in-depth research carried out by the author Sylvain Bouyon, CEPS-ECRI Research Fellow. Co-published with Rowman and Littlefield International (RLI), this book can also be purchased for �12.9, either in paperback or as an e-Book from the RLI website. Length: 93 pages Creation-Date: 2017-02 File-URL:https://www.ceps.eu/system/files/TFRFutureFinancialServices.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:12265 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Musmeci, Roberto Title:Two Dimensions of Combating Over-Indebtedness: Consumer protection and financial stability Abstract: The expansion of credit markets has fostered economic growth across the European Union, but it has also produced a sharp increase in the average level of household indebtedness. As a consequence of the financial crisis, the drop in households� disposable income has undermined the ability of many EU households to honour their financial commitments. Against this background, this paper investigates the complexity of indebtedness and draws a distinction between its legal and economic dimensions in order to better understand the phenomenon. Despite efforts made by the European Commission, we found that the definition of indebtedness and over-indebtedness still lacks precision. Mirroring the interventions of national legislators in terms of consumer protection, over-indebtedness in the EU tends to be narrowly defined in terms of its relationship with insolvency. Therefore, further efforts need to be taken in designing the necessary measures to alleviate and prevent over-indebtedness. Accordingly, this study focuses on the role of financial education, analyses the impact of the relevant EU directives, collects important evidence in support of harmonising debt-advice services and explores the path towards a common methodology of early detection of vulnerable households. Length: 20 pages Creation-Date: 2016-10 File-URL:https://www.ceps.eu/system/files/ECRI%20RR%20No%2018%20Over-indebtedness_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:11930 Template-Type: ReDIF-Paper 1.0 Author-Name: Milne, Alistair Author-Name: Parboteeah, Paul Title: The Business Models and Economics of Peer-to-Peer Lending Abstract: This paper reviews peer-to-peer (P2P) lending, its development in the UK and other countries, and assesses the business and economic policy issues surrounding this new form of intermediation. P2P platform technology allows direct matching of borrowers� and lenders� diversification over a large number of borrowers without the loans having to be held on an intermediary balance sheet. P2P lending has developed rapidly in both the US and the UK, but it still represents a small fraction, less than 1%, of the stock of bank lending. In the UK � but not elsewhere � it is an important source of loans for smaller companies. We argue that P2P lending is fundamentally complementary to, and not competitive with, conventional banking. We therefore expect banks to adapt to the emergence of P2P lending, either by cooperating closely with third-party P2P lending platforms or offering their own proprietary platforms. We also argue that the full development of the sector requires much further work addressing the risks and business and regulatory issues in P2P lending, including risk communication, orderly resolution of platform failure, control of liquidity risks and minimisation of fraud, security and operational risks. This will depend on developing reliable business processes, the promotion to the full extent possible of transparency and standardisation and appropriate regulation that serves the needs of customers. Length: 36 pages Creation-Date: 2016-05 File-URL:https://www.ceps.eu/system/files/ECRI%20RR17%20P2P%20Lending.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:11594 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Lannoo, Karel Title: Relaunching the European Retail Finance Market: Comments on the Commission's Green Paper Abstract: The European Commission�s Green Paper on retail financial services, published on December 10th, provides valuable insights into the possible benefits of a single market, as well as the obstacles to its development and the possible remedies. While a greater diversity of products within countries could have a positive impact on both consumers and providers, it is also important to highlight that it could contribute to more effective macroeconomic policies at European level. The development of such a single market for Europe where consumers can confidently purchase more profitable financial products abroad necessitates the establishment of a European body along the lines of the US Consumer Financial Protection Bureau (CFPB), or at least the establishment of closer European supervisory cooperation and enforcement. A framework for the digitalisation of financial services should not only focus on mitigating specific types of risk, such as cyber insecurity, lack of privacy and financial exclusion, but it should also continue to maintain a �space of creation� for innovative financial firms. Length: 4 pages Creation-Date: 2015-12 File-URL:https://www.ceps.eu/system/files/No%2020%20Retail%20Financial%20Services-_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:11187 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: What drives household consumption in the EU-28? Abstract: Given that final consumption of households has contributed on average to broadly 60% of EU-28 GDP since 2001, an assessment of the drivers behind its dynamics is quite timely in a context of gradual economic recovery. The empirical analyses presented in this ECRI Commentary, covering 19 of the EU-28 economies, suggest that disposable income of households, consumer credit markets and the developments in housing markets have had a significantly positive impact on the growth of household final consumption since 2001. On the other hand, demographic trends do not seem to have played any significant role. Length: 9 pages Creation-Date: 2015-12 File-URL:https://www.ceps.eu/system/files/No%2019%20SB%20What%20drives%20household%20consumption%20in%20the%20EU28.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:11148 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: Household Final Consumption in the EU: The key driver for a sustainable recovery? Abstract: This commentary finds that after four to five years of poor performance, final consumption of households is expected to recover significantly in 2015 and 2016. This is all the more important since final consumption of households was the main driver of economic growth during the 12 years preceding the financial crisis. Some obstacles still stand in the way, however, preventing a sustainable recovery in private consumption. This ECRI Commentary is one of two on the topic of household consumption in the EU, published simultaneously by the same author; ECRI Commentary No.19, entitled �What drives household consumption in the EU-28?� looks at the main factors that have influenced EU-28 household consumption since 2001. Length: 4 pages Creation-Date: 2015-12 File-URL:https://www.ceps.eu/system/files/No%2018%20Household%20final%20consumption_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:11147 Template-Type: ReDIF-Paper 1.0 Author-Name: Milne, Alistair Title: Achieving European Policy Objectives through Financial Technology Abstract: Alistair Milne argues in this ECRI Commentary that �FinTech� (newly emerging Financial Technologies) can play a crucial role in achieving European policy objectives in the area of financial markets. These notably include increasing access by smaller firms to trade credit and other forms of external finance and completing the banking and capital markets unions. He points out, however, that accomplishing these objectives will require a coordinated European policy response, focused especially on promoting common business processes and the adoption of shared technology and data standards. Length: 6 pages Creation-Date: 2015-11 File-URL:https://www.ceps.eu/system/files/ECRI%20Commentary%20No%2017%20Alistair%20Milne%20Financial%20Technology_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:11104 Template-Type: ReDIF-Paper 1.0 Author-Name: Sainsot, Robin Title: A Convergence Process in Household Credit in Central and Eastern Europe Abstract: The liberalisation of Eastern Europe�s market during the 1990s and the 2004 EU enlargement have had a great impact on the economies of Central and Eastern Europe (CEE). Indeed, prior to these events, the financial system and household credit markets in CEE were underdeveloped. Nonetheless, it appeared to numerous economists that the development of the CEE financial system and credit markets was following an intensely positive trend, raising the question of sustainability. Many variables impact the level and growth rate of credit; several economists point out that a convergence process might be one of the most important. Using a descriptive statistics approach, it seems likely that a convergence process began during the 1990s, when the CEE countries opened their economies. However, it also seems that the main driver of this household credit convergence process is the GDP per capita convergence process. Indeed, credit to households and GDP per capita have followed broadly similar tendencies over the last 20 years and it has been shown in the literature that they appear to influence each other. The consistency of this potential convergence process is also confirmed by the breakdown of household credit by type and maturity. There is a tendency towards similar household credit markets in Europe. However, it seems that this potential convergence process was slowed down by the financial crisis. Fortunately, the crisis also stabilised the share of loans in foreign currency in CEE countries. This might add more stability to credit markets in Eastern Europe. Length: 15 pages Creation-Date: 2015-10 File-URL:https://www.ceps.eu/system/files/ECRI%20Commentary%20No%2016%20RS%20Household%20credit%20in%20CEE_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:11057 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: Recent trends in EU home ownership Abstract: Home ownership has been a source of concern for many EU28 governments, especially since the start of the economic crisis in 2008-09. After five-to-six years of persistently weak economic performance and in the context of the recently enacted mortgage credit directive - which should affect the principal funding channel of housing purchases � it seems timely to look at recent home ownership behaviours across the EU28, with special emphasis on the major changes. Recent macroeconomic data reveal three striking phenomena: highly diverse home ownership rates across countries � still; significant contractions in ownership in the UK and Ireland (especially among families); and marked contractions in ownership among poorer households in the EU15 since 2007. This ECRI Commentary is one of two on the topic of home ownership in the EU, published simultaneously by the same author; ECRI Commentary No.14, entitled �Home ownership, labour markets and the economic crisis� looks at the effects of high levels of home ownership, especially on labour markets. Length: 8 pages Creation-Date: 2015-06 File-URL:http://www.ceps.eu/system/files/ECRI%20Commentary%20No%2015%20SB%20Recent%20Trends%20in%20Home%20Ownership%20in%20the%20EU-28%20final_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:10691 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: Home ownership, labour markets and the economic crisis Abstract: In recent decades, a growing body of academic literature has focused on the possible negative effects of high levels of home ownership, especially on labour markets. More-than-optimal levels of home ownership may impede the mobility of workers, resulting in higher unemployment rates in some European regions. Against that backdrop, a simple model was devised to test the relationship between home ownership, mobility and unemployment. Recent macroeconomic data published by Eurostat suggest that both the variables of mobility and home ownership have had a significant impact on the dynamics of unemployment rates across the EU28. This ECRI Commentary is one of two on the topic of home ownership in the EU, published simultaneously by the same author; ECRI Commentary No.15, entitled �Recent trends in EU home ownership� looks at the major developments since the crisis of 2008. Length: 5 pages Creation-Date: 2015-06 File-URL:http://www.ceps.eu/system/files/ECRI%20Commentary%20No%2014%20SB%20Home%20ownership%20and%20labour%20markets%20FINAL--.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:10690 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: Towards a Balanced Contribution of Household Credit to the Economy Abstract: While policy-makers are creating conditions to strengthen recovery, the debate on the role that retail finance should play in this respect focuses on corporate loans rather than on household credit. The improvement of financing conditions for firms in order to support further investment spending is certainly essential to ensuring sustainable growth. However, a significant part of EU growth will depend on the behaviour of households and on their ability to secure funding for their consumption and investment. It is therefore essential to place further emphasis on the different options available to stimulate household credit, in particular consumer loans. Nevertheless, in order to avoid past mistakes, regulators should continue to develop a framework where consumer loans (and by extension household credit) contributes to the economy in a balanced way. To achieve this, five main issues need to be addressed further: -Greater harmonisation in statistical methodologies to support the policy process. -Refinement of macroeconomic models used to boost loans, both in a quantitative way and a qualitative way. -Innovative policy tools to deal with persistent and new market dysfunctions for household credit (especially in the areas of information disclosure requirements and responsible lending practices). -Better understanding of the integration process of household credit. -Accompanying the financial sector throughout its digital transition process. This report is based on discussions in the CEPS-ECRI Task Force �Towards a Balanced Contribution of Household Credit to the Economy�, which met several times over a concentrated period from May 2014 to April 2015, under the chairmanship of Eric Delannoy, former Vice President of Weave. Sylvain Bouyon, CEPS-ECRI Research Fellow, acted as rapporteur. Length: 119 pages Creation-Date: 2015-05 File-URL: http://www.ceps.eu/system/files/CEPS-ECRI%20TFR%20Household%20Credit.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:10554 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: A Review of Policy Options for Monitoring Household Saving Abstract: A proper understanding and monitoring of household saving are necessary to conduct appropriate macroeconomic policies aiming at a balanced economic recovery in the EU-15. The process of monitoring household saving is twofold: on the one hand, it concerns the liquidity level of the household savings portfolio (liquidity approach); and on the other hand, it places emphasis on the saving rates of households (saving rates approach). Within the liquidity approach, in theory, each of the household motives (target saving, precautionary saving and pension saving) is related to specific saving products. However, inadequate financial education and low confidence in banking systems can distort the relationship of saving motives to saving products and lead to a sub-optimal savings portfolio, with poor yields and excess liquidity (especially with regards to pension saving). Nevertheless, overall, yield spreads do have an impact on the corresponding relative savings market shares, confirming the effectiveness of monetary policy transmission mechanisms into the liquidity levels of household savings portfolios. Regarding the saving rates approach, data show differentiated dynamics across EU-15 countries, partly owing to specific local habits and developments in financial markets. The persistent saving ratio differentials across countries, which also mirror differentiated propensities to accumulate target saving, could be partially reduced by the design of regulations whose primary goal is to improve the overall attractiveness of mortgage and consumer credits. In addition, since 2007, consistently significant beta-convergence observed in the results of the panel data regressions indicates that the need for balance sheet repair was stronger for countries with low saving ratios in the years preceding the financial crisis. The absence of correlation between saving ratios and different types of saving yields suggests the poor transmission of monetary policies in the trade-off between private consumption and saving. Conversely, the results confirm the prominent role played by the precautionary motive during the financial crisis of 2008-09, which is reflected in the strong impact of unemployment rates and housing prices. Length: 30 pages Creation-Date: 2014-10 File-URL:http://www.ceps.eu/system/files/ECRI%20RR_16.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:9754 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Title: The Impact of Banking Structural Reform on Household Retail Finance Abstract: There are two main objectives behind the EC proposal on banking structural reform: the financial stability objective and the economic efficiency objective. If it is implemented, the reform should reinforce the stability and economic efficiency of household retail activities through lower contagion, better resolvability in the event of failure, more harmonised supervisory practices across the EU and more resilient household demand for retail loans. However, it could also trigger counterproductive effects that could partly undermine the expected benefits. These potential negative effects are not appropriately assessed in the impact study of the proposal published in January 2014 and will require further consideration in the coming months. In particular, the stability of household retail finance could be strengthened by placing more emphasis on bankruptcy risks of retail banks; the transfer of existing systemic activities towards less regulated and supervised markets and reputational risk. A better analysis of the borrowing costs for households (impacted by the potential decreasing diversification of the funding base of banks and scarcer liquidity) and implementation costs could help regulators to achieve the objective of efficient household activities. Length: 6 pages Creation-Date: 2014-10 File-URL:http://www.ceps.eu/system/files/Impact%20of%20structural%20reform-Final.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:9702 Template-Type: ReDIF-Paper 1.0 Author-Name: Bouyon, Sylvain Author-Name: Boeri, Filippo Title: Another contraction in European household credit markets: Key findings from the ECRI Statistical Package Abstract: The ECRI Statistical Package 2014 Lending to Households reveals that the total amount of outstanding household real debt at end-2013 contracted for the third consecutive year in both the EU member states (EU27) and the euro area (EA17). All in all, indicators point to less divergent growth patterns across member states in 2013, as the standard deviation of the sample in domestic currency recorded its lowest value in more than 15 years. Still, pronounced corrections continued in a few countries, especially in Slovenia, Portugal, Spain, Hungary and Latvia. The successive yearly contractions in the EU27 occurred despite significant easing in interest rates in many markets over the last few years. Gross disposable income of households, which is one of the main drivers behind households� demand, and housing prices, which can affect both demand and supply of loans, have had strong effects on the dynamics of household debt since 2007. Considering household debt-to-GDP ratios, long-term comparisons between the different groups of countries composing the EU27 show that no convergence was observed across these groups and across EU27 countries in the years preceding the financial crisis. However, partly as a result of the 2008-09 financial crisis and its long-lasting effects, strong convergence was registered across EU27 countries between 2007 and 2013. Regarding non-financial corporation (NFC), the outstanding debt decreased again in 2013 in both the EU27 and the euro area. In 2013, the correction intensified in nominal terms in both the EU27 and the EA17, but slowed down in real terms in comparison with 2012. The Key Findings relate to the more detailed ECRI 2014 Statistical Package covering 38 countries: the 27 EU member states, three EU candidate countries (Croatia, Turkey and the Former Yugoslav Republic of Macedonia), the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) and four key global economies (the United States, Australia, Canada and Japan). The purpose of the package is to provide reliable statistical information that allows users to make meaningful comparisons in time and between these countries. Length: 6 pages Creation-Date: 2014-08 File-URL:http://www.ceps.eu/system/files/ECRI%20-%20Statistical%20Package%202014-%20Key%20findings.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:9574 Template-Type: ReDIF-Paper 1.0 Author-Name: Helsen, Frederic Author-Name: Chmelar, Ales Title: Collateral and Credit Rationing: The role of collateral in explaining and remediating the limited flow of credit to households and SMEs Abstract: European-wide data concerning both companies and households indicate that the credit rationing phenomenon, which has been predicted by theory, does in fact occur to a significant degree in the European credit market. Among SMEs, micro companies are most vulnerable and the current economic crisis has only made these concerns more pressing. Top-down use of the monetary transmission mechanism alone is insufficient to counter the problem. The other solution consists of a bottom-up, microeconomic stimulation of lending transactions, by focusing on collateral and guarantees. The data confirm the high importance that lenders � especially individual households and micro companies � attach to collateral and guarantees when making their lending decisions. As a consequence, we would argue that those parts of the law governing security interests and guarantees should be one of the primary targets for government policy aimed at improving credit flows, especially in avoiding a conflict between consumer protection measures and laws on surety and guarantees. This policy brief firstly aims to give an overview of the problem of credit rationing and to show that low-income households and SMEs are most concerned by the phenomenon. Focusing solely on loans as a way of financing and on the issues related to access to finance by micro and small companies as well households, it then sketches possible solutions focused on guarantees. This paper brings together data from the Eurosystem Household Finance and Consumption survey (HFCS), Eurostat, and both the latest wave of the extended biennial EC/ECB Survey on the access to finance of SMEs (EC/ECB SAFE 2013) and the latest wave of the smaller semi-annual ECB SAFE Survey, covering the period between October 2012 and March 2013. Length: 13 pages Creation-Date: 2014-02 File-URL:http://www.ceps.eu/system/files/ECRI%20PB%20No%207%20Collateral%20and%20credit%20rationing_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:8946 Template-Type: ReDIF-Paper 1.0 Author-Name: Malaguti, Maria Chiara Author-Name: Guerrieri, Alessandra Title: Multilateral Interchange Fees: Competition and regulation in light of recent legislative developments Abstract: Two-sided payment card markets generate costs that have to be distributed among the participating actors. For this purpose, payment card networks set an interchange fee, which is the fee paid by the merchant�s bank to the cardholder�s bank per transaction. While in recent years many antitrust authorities all over the world - including the European Commission - have opened proceedings against card brands in order to verify whether agreements to collectively establish the level of interchange fees are anticompetitive, the Reserve Bank of Australia � as a regulator - has directly tried to address market failures by lowering the level of interchange fees and changing some network rules. The US has followed with new legislation on financial consumer protection, which also intervenes on interchange fees. This has opened a strong debate not only on legitimacy of interchange fees, but also on the appropriateness of different public tools to address such issues. Drawing from economic and legal theories and a comparative analysis of recent case law in the EU and other jurisdictions, this work investigates whether a regulation rather than a purely competition policy approach would be more appropriate in this field, considering in particular, at EU level, all of the competition and regulatory concerns that have arisen from the operation of SEPA with multilateral interchange fees. The paper concludes that a wider regulation approach could address some of the shortcomings of a purely antitrust approach, proving to be highly beneficial to the development of an efficient European single payments area. Length: 48 pages Creation-Date: 2014-01 File-URL:http://www.ceps.eu/system/files/ECRI%20RR14%20MCM%2526AG%20on%20MIFs.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:8860 Template-Type: ReDIF-Paper 1.0 Author-Name: Chmelar, Ales Title: Transaction Banking: Respecting its role in the real economy Abstract: This paper sketches the main features and issues related to recent market developments in global transaction banking (GTB), particularly in trade finance, cash management and correspondent banking. It describes the basic functioning of the GTB, its interaction with global financial markets and related implications of global regulatory developments such as Basel III. The interest in GTB has recently increased, since its low-risk profile, tendency to follow growth rates worldwide and relative independence from other financial instruments became an interesting diversification opportunity both for banks� business models and for investors. Transaction banking has been a resilient business during the crisis, despite the reduction in world trade figures. In the post crisis period, GTB must cope with new challenges related to increased local and global regulation and the risk of inconsistency in regulatory approaches, which could negatively impact the global network and increased competition by new market entrants. Increased sophistication of corporate clients, as well as the pressure to develop and adopt technological innovations more quickly than other areas of banking continues to impact the business. The future of the industry closely depends on its ability to adjust to complex regulatory developments while at the same time being able to operate a global and efficient network. Length: 16 pages Creation-Date: 2013-12 File-URL:http://www.ceps.eu/system/files/ECRI%20PB%20No%206%20Chmelar%20on%20Transaction%20Banking.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:8714 Template-Type: ReDIF-Paper 1.0 Author-Name: Pyykko, Elina Title: Towards Better Use of Credit Reporting in Europe Abstract: This report discusses how the current EU credit reporting systems meet the demands of the different stakeholders in the credit granting and management process, and what is needed to improve these systems. As credit reporting is a tool for responsible lending and for ensuring financial inclusion of consumers, it argues that the needs of EU credit markets and consumers should be the basis for assessing the current regulation and its functionality. How a creditor assesses the risk and the creditworthiness of a customer is at the core of successful and safe crediting. Facilitating this assessment process, within the boundaries of data protection laws, is a key building block for making well-informed credit decisions. Length: 68 pages Creation-Date: 2013-09 File-URL:http://www.ceps.eu/system/files/Towards%20Better%20Use%20of%20Credit%20Reporting_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:8384 Template-Type: ReDIF-Paper 1.0 Author-Name: Chmelar, Ales Title: European household credit markets continue to fall: Key findings from the ECRI Statistical Package Abstract: The ECRI Statistical Package 2013, Lending to Households in Europe has revealed that European households registered a second consecutive year of falling real values of loans: 2012 followed the historical first drop recorded in 2011. While debt reduction proceeds across the continent, deleveraging to disposable income and to GDP remains limited due to unequal and sluggish recovery. The year 2012 was therefore one of stagnation in household-credit markets. Aggregate housing loans in the EU registered negative real growth rates, illustrating long-term problems in the overall economy. Together with record-low interest rates on housing loans in some countries, this finding reflects lower consumer confidence and the increased strain on households� medium-term income. While this year�s degree of credit reduction in the EU overall has not been as significant as in previous years, Euro Area (EA) households registered a bigger drop in household credit than in 2011, underlying the prevailing economic problems of last year. At the same time, the EA periphery continued to reduce its household debt by record levels. The stagnation is also present in the normally rather resilient Central and Eastern European countries where the credit reduction extends beyond the former periphery to Poland and Slovenia. Households in Hungary, Eastern Balkan countries and in the Baltic states continued to reduce their debt exposure significantly throughout 2012. The Key Findings relate to the more detailed ECRI 2013 Statistical Package covering 38 countries: the 27 EU member states, three EU candidate countries (Croatia, Turkey and the Former Yugoslav Republic of Macedonia), the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) and four key global economies (the United States, Australia, Canada and Japan). The purpose of the package is to provide reliable statistical information that allows users to make meaningful comparisons in time and between these countries. Length: 4 pages Creation-Date: 2013-08 File-URL:http://www.ceps.eu/system/files/ECRI%20Statistical%20Package%20Key%20findings%202013_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:8331 Template-Type: ReDIF-Paper 1.0 Author-Name: Chmelar, Ales Title: Household Debt and the European Crisis Abstract: The fall in economic output all over Europe since 2008 has had important consequences for household liabilities. Major growth in demand and supply for household credit products has generated an increase in household debt, which contributed to growth rates during the pre-crisis period but � in some countries � became household-debt overhangs and helped inflate asset bubbles. In the run-up to the crisis, long-term economic lessons and theories were often overlooked and signs that the economic situation could worsen were ignored. Although not at the core of the crisis, household debt had important consequences for macroeconomic stability, robustness of growth and the depth of recessions. The last ten years in Europe have demonstrated the typical final stage of a household debt cycle: rapid increase and abrupt retrenchment. Widely varying outcomes across Europe enable us to consider the causes of the rapid growth in household debt and draw theoretical lessons that can help policy-makers and academics devise a coherent regulatory response to avoid extremes of the debt cycle in future. Length: 32 pages Creation-Date: 2013-07 File-URL: http://www.ceps.eu/system/files/Household%20Debt%20and%20the%20European%20Crisis.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:8239 Template-Type: ReDIF-Paper 1.0 Author-Name: Chmelar, Ales Title: Key Findings from the ECRI Statistical Package 2012: Debt crisis hits Europe�s retail credit markets Abstract: These Key Findings from the ECRI 2012 Statistical Package reveal that after a slender recovery of retail credit in 2010, European households registered a downward adjustment of their stock of loans in 2011. The deleveraging remains uneven and is only loosely related to the overall indebtedness of households to GDP. Moreover, the Euro Area and the EU appear to be decoupling into two groups in this regard: the geographic core and the periphery. Peripheral countries generally shared a period of fast credit expansion during the pre-crisis period, followed by record levels of deleveraging. Core countries, on the other hand, which registered low levels of credit expansion before the crisis, are now experiencing only moderate or no deleveraging. The Key Findings relate to the more detailed ECRI 2012 Statistical Package covering 38 countries: the 27 EU member states, three EU candidate countries (Croatia, Turkey and the Former Yugoslav Republic of Macedonia), the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) and four key global economies (the United States, Australia, Canada and Japan). The purpose of the package is to provide reliable statistical information that allows users to make meaningful comparisons between these countries. Length: 6 pages Creation-Date: 2012-08 File-URL: http://www.ceps.eu/system/files/book/2012/08/ECRI%20Statistical%20Package%20Key%20Findings%202012%20-%20Final.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:7218 Template-Type: ReDIF-Paper 1.0 Author-Name: Pyykko, Elina Title: Data protection at the cost of economic growth? Abstract: The Data Protection Regulation proposed by the European Commission contains important elements to facilitate and secure personal data flows within the Single Market. A harmonised level of protection of individual data is an important objective and all stakeholders have generally welcomed this basic principle. However, when putting the regulation proposal in the complex context in which it is to be implemented, some important issues are revealed. The proposal dictates how data is to be used, regardless of the operational context. It is generally thought to have been influenced by concerns over social networking. This approach implies protection of data rather than protection of privacy and can hardly lead to more flexible instruments for global data flows. Length: 7 pages Creation-Date: 2011-11 File-URL: http://www.ceps.eu/system/files/ECRI%20Commentary%20No%2011%20Data%20protection.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:7459 Template-Type: ReDIF-Paper 1.0 Author-Name: Chmelar, Ales Title: Household Debt in Europe�s Periphery: The dangers of a prolonged recession Abstract: The second-dip recession in Europe�s periphery has created a poisonous mix, which risks threatening further the financial system and the economy. Against this background, this ECRI Commentary argues that time matters in the household deleveraging cycle and that a swift recovery is one of its most vital parts. The paper also assesses the extent to which these effects have already materialised and evaluates the risks for countries that have so far been spared their full effects. It also offers a theoretical policy response towards a more sustainable household credit sector and overall economic recovery. Length: 14 pages Creation-Date: 2011-11 File-URL: http://www.ceps.eu/system/files/ECRI%20commentary%20No%2012%20Chmelar%20Household%20deleveraging_0.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:7478 Template-Type: ReDIF-Paper 1.0 Author-Name: Pyykko, Elina Title: Review of the Payment Services Directive: The question of surcharges Abstract: The Payment Services Directive was intended to provide more price transparency for users and a level playing field for efficient competition among different payment services by decreasing the inhibiting effects of different legislation, cross-subsidisation and non-cost-based pricing. The European Commission, however, intended most of these effects to come about through market-led initiatives. In the run-up to the review of the Directive, Elina Pyykk� asks in this ECRI Policy Brief whether more could not be done to promote the use of efficient payment methods. Length: 7 pages Creation-Date: 2011-10 File-URL: http://www.ceps.eu/system/files/book/2011/10/ECRI%20PB%20No%205%20Pyykko%20on%20the%20PSD.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:6290 Template-Type: ReDIF-Paper 1.0 Author-Name: Gerhardt, Maria Author-Name: Lannoo, Karel Title: Options for reforming deposit protection schemes in the EU Abstract: With the financial crisis, citizens suddenly realized that different levels and forms of depositor protection co-existed in the EU, whereas they had been told for almost 20 years that a single market was in place. Current deposit insurance arrangements in Europe need to be changed, as they match neither market integration nor consumer expectations. But deposit insurance cannot be considered in isolation; it is part of the broader financial safety net and the crisis resolution tools for banks. Confronted with the question of what action should be taken to draw the right lessons from the crisis, practically the only option is an EU-wide fund, but policy-makers are still hesitant. Any intermediate solution will maintain too many distortions and imperfections and will not provide a coherent response to current challenges. This policy brief reviews current policy discussions on deposit insurance in the EU. It looks at the role of deposit insurance as part of the (European) financial safety net and examines the Commission�s recent proposal to amend the EU Directive on deposit guarantee schemes (DGS). The three options for a European DGS are assessed, followed by conclusions and recommendations. Length: 15 pages Creation-Date: 2011-03 File-URL: http://www.ceps.eu/system/files/book/2011/03/ECRI%20Policy%20Brief%204.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:4339 Template-Type: ReDIF-Paper 1.0 Author-Name: Rothemund, Marc Author-Name: Gerhardt, Maria Title: The European Credit Information Landscape Abstract: Credit referencing occurs in many countries of the world with a primary purpose of collecting and providing information to help lenders make better decisions. However, there are many different models ranging from highly comprehensive databases of wide ranging information in the most advanced markets; to more basic registers of unpaid debts in more recently created registers. This report is the evaluation of a survey that was conducted amongst all 37 members of the Association of Consumer Credit Information Suppliers (ACCIS) in March/April of 2010. The objective in undertaking such a comprehensive survey in such a complex business is to support and inform the ACCIS Committee and members about our industry. In addition, it will also be used to advise regulators, the press and advisors about the credit bureau landscape across the EU. Length: 37 pages Creation-Date: 2011-01 File-URL: http://www.ceps.eu/system/files/book/2011/05/ACCIS-Survey_FinalReport_withCover.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:5518 Template-Type: ReDIF-Paper 1.0 Author-Name: Jentzsch, Nicola Author-Name: Wey, Christian Title: The Future of Retail Banking in Europe: Competition and regulatory challenges Abstract: This report brings together in a single volume the excellent contributions presented at the high-level conference on �The Future of Retail Banking in Europe: Competition and Regulatory Challenges� held at CEPS on the 10th of June 2009. The conference was jointly organized by the European Credit Research Institute (ECRI) and the Deutsche Institut f�r Wirtschaftsforschung (DIW Berlin) and coincided with the 10th anniversary of the founding of ECRI. While most of the debate about the crisis dealt with the banking industry as a whole and the stabilisation policies introduced by governments, especially central banks, this volume drew attention to the microeconomic specifics of banking. By starting with the basics underlying financial markets, we acquire a better understanding of the many facets of business practices, which in turn allows us to identify possible market failures. The identified market failures serve as a starting point for the design of optimal policies in the arenas of competition policy and consumer protection. Length: 52 pages Creation-Date: 2010-04 File-URL: http://www.ceps.eu/system/files/book/2010/04/ECRI%20RR%20No%2012%20with%20covers%20final.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:3119 Template-Type: ReDIF-Paper 1.0 Author-Name: Giannetti, Caterina Author-Name: Jentzsch, Nicola Author-Name: Spagnolo, Giancarlo Title: Information Sharing and Cross-Border Entry in European Banking Abstract: Information asymmetries can severely limit the cross-border border expansion of banks, if entering banks can only obtain incomplete information about potential new clients. Such asymmetries are reduced by credit registers, which distribute financial data on bank clients. This ECRI research report investigates the interaction of credit registers and bank entry modes (in the form of branching as well as mergers and acquisitions) by using a new set of time-series cross-section data for the EU-27 countries. We study how the presence of public and private credit registers and the kind of information exchanged affected the modes of bank entries during the period 1990�2007. Our analysis shows that the existence of both types of registers increases the share of branching among the overall bank entries. Additionally, the establishment of public registers reduces concentration ratios and some banking competition indicators (such as overhead costs/assets). The introduction of a private credit bureau, on the other hand, has no effect on concentration ratios, but positively contributes to competition (by cutting interest rate margins). These findings suggest that credit registers facilitate the direct entry of banks through a reduction of information asymmetries, which in turn intensifies competition. Length: 52 pages Creation-Date: 2010-02 File-URL: http://www.ceps.eu/system/files/book/2010/02/ECRI%20RR%20No%20%2011.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:2990 Template-Type: ReDIF-Paper 1.0 Author-Name: J�rgen Bott Title: The Single Euro Payments Area: New Alliances Required to Tip the Market Abstract: When it was originally proposed, the Single Euro Payments Area (SEPA) was hailed for its potential to contribute significantly to making Europe the most competitive and dynamic knowledge-driven economy by 2010. All national payments standards were supposed to disappear and be replaced by new SEPA standards, which would allow additional economies of scale and scope. After six years of intensive work on developing SEPA, however, and roughly 18 months before SEPA was due to have been completed (end of 2010), this ECRI Research Report finds that the SEPA process is in a crisis. The banks and their customers are reluctant to migrate to the new SEPA standards and some banks and banking associations are not persuaded that the benefits attributed by the European Commission to SEPA will materialise. The author, Professor Dr J�rgen Bott of the University of Applied Sciences of Kaiserslautern, argues that incentives are necessary to motivate service providers and users to change their current behaviour and to migrate to new service standards. Length: 32 pages Creation-Date: 2009-07 File-URL: http://www.ceps.eu/system/files/book/1871.pdf File-Format: Application/pdf Handle: RePEc:eps:ecriwp:1693