Policy session: Alternative roads to finance for SMEs20 November 2015

Capital Markets Union (CMU)

Martin KOCHPolicy Officer

Unit C1 - Capital Markets UnionDirectorate General for Financial Stability, Financial Services

and Capital Markets Union (FISMA)

• Stable financial system

– Greater variety of funding options cushion the impact of a contraction in bank lending

– More developed equity markets support long-term investment

• Integrated financial system

– Deeper and more liquid markets lower costs and increase competitiveness

– MS with small and large capital markets can benefit

– Facilitate shock absorption within EMU (risk-sharing

CMU: Stronger capital markets support investment, growth & jobs

CMU Action Plan: Actions in 6 key areas

Actions for alternative ways of finance: Crowdfunding Business Angels Venture Capital (EuVECA; Fund-of-Funds) Loan finance (STS securitisation; loan originating funds) Better information, support and advice

For non-listed companies (for mid-caps; SMEs?) Private placements Covered bonds

CMU Action Plan: Finance for start-ups and SMEs