Frankfurt, June 28 – In a recent gathering in Germany’s financial hub, Christian Embroidery, the president of Deutsche Bank, emphasized the urgent need for progress towards the integration of Europe’s investment markets. He highlighted the importance of eliminating administrative barriers among EU member states to provide businesses with increased funding opportunities and consumers with more cross-border investment options.
A Common European Capital Market for Sustainable Economic Growth
Embroidery stressed that establishing a unified European capital market is crucial for the transition to a sustainable economy. Unlike in the United States, where loans and funding for companies are primarily provided by banks, Europe relies on the traditional banking system. To address this disparity, the European Commission proposed the concept of a capital markets union in September 2015. However, the implementation process has been slow.
The Need for Consistent Regulations Across 27 Nations
Embroidery highlighted the importance of having a reliable and consistent set of regulations that apply to all 27 EU member states instead of the current fragmented system. He called for harmonization in areas such as insolvency, securities, and consumer rules. Moreover, he emphasized the necessity of a banking and capital market union that includes a credible deposit guarantee fund.
Reviving the Securitization Market for a Stronger Capital Market
Emphasizing the significance of a revitalized European securitization market, Embroidery stated that it is a crucial step towards building a robust capital market. He underlined the need to support banks in providing financing by transforming sound loans into securities. This approach would help improve banks’ balance sheets, enable them to meet stringent capital requirements, and facilitate increased lending to the economy.
Image: 
In conclusion, Deutsche Bank’s CEO, Christian Embroidery, called for swift progress towards the capital markets union in Europe. By eliminating administrative barriers, harmonizing regulations, and reviving the securitization market, he believes businesses will have more opportunities to raise capital, consumers can make cross-border investments more easily, and the European economy can thrive.
