On the European level, the Commission is leading the work for a European framework for the management of failing financial institutions. Transparency is another – or maybe even the other – major issue which has to be strengthened in the regulatory framework. Establishing and maintaining transparency is a permanent topic in the regulatory debate and a necessary condition for market discipline.
Corporate finance in Europe is still heavily reliant on debt, first and foremost bank loans. Taking GDP as a yardstick, the EU banking system is four times larger than its US counterpart. Conversely, equity capital plays a minor role.