This is particularly true for European SMEs, as the European market for venture capital remains very small compared to the one in the US. The availability of bank credit is, thus, crucial for sustained investment of firms and, therefore, plays an important role for economic development and growth.
The framework grew both in terms of the number and the forms of the regulatory instruments involved, incorporating both regulations and directives, as well as regulatory technical standards and guidelines developed by the European Banking Authority (EBA), European Securities and Market Authority and the European Insurance and Occupational Pensions Authority. Nevertheless, the AML Directive has remained the core of the legal framework.