Since the 2008 financial crisis, the United States and Europe have sought to reform the banking industry in an effort to reduce future risks to the financial system and economy. This Policy Report compares the role of capital markets in the U.S. and Europe in supporting the real economy. It focuses on the link between traditional banking and the weak European recovery and highlights differences between the U.S. and Europe, in particular the euro zone and Germany. By comparing the current structure of financial markets in the U.S. and Europe, the author tries to establish whether the American and European financial systems are on converging or increasingly diverging trajectories and what the potential implications are for the real economy.
Made possible by the support of Deutsche Bank