Significant Changes in the Global Financial System
EU Financial Market Reforms
The European Commission is planning long-term reforms to deepen the EU capital markets and create investment opportunities for institutional investors. The facilitation of securitizations is a focus to direct more capital into the real economy. This could promote economic growth as well as support innovation and employment. In particular, private households and SMEs benefit from better access to credit. Efficiency improvements in the banking sector and reduced borrowing costs are other goals.
The USA as a Global Standard Setter
Despite political turbulence, the USA remains a stable player in the global financial system. Increased capital requirements and improved supervisory mechanisms strengthen the system, with private capital providers increasingly filling the gaps left by traditional institutions. The growth of private markets opens new opportunities for investors and boosts confidence in these asset classes.
Financial Stability Under Pressure
Risks to financial stability have increased due to geopolitical conflicts and political decisions. Debt brake reforms in Germany could provide medium-term positive impulses through infrastructure investments.
Potential Implications for Private Investors and Savers
- Better Credit Availability: Facilitated securitizations could help banks increase their lending capacities.
- More Investment Opportunities: The opening of private markets offers retail investors opportunities beyond traditional asset classes.
- Increased Market Transparency & Regulation: Improved oversight strengthens investor confidence.
- Hedging Against Systemic Risks: Gold remains a safe investment form in times of increased volatility.
- Long-term Growth Potential: Structural reforms aim for sustainable economic growth.
Overall, this “new era” marks a profound reshaping of the global financial system aimed at greater stability, efficiency improvements, and enhanced accessibility for all actor groups.