Your IMF Update: Staff Discussion Notes

[International Monetary Fund]

Staff Discussion Notes Open in your browser Staff Discussion Notes : Deeper and More Integrated Financial Markets to Foster Growth and Resilience in Europe June 10, 2026 Persistent fragmentation and limited depth in EU financial markets constrain firm growth, innovation, and cross-country risk sharing. This Staff Discussion Note documents policy-induced barriers that impede cross-border bank lending and suppress the scale of venture capital, alongside broader real-sector frictions that restrict the amount of investable projects. Obstacles examined in the Note include heterogeneity in banking regulation and safety nets (notably deposit insurance), as well as insolvency regimes, and rules limiting the provision and allocation of risk capital by pension funds and insurers. Financial reforms could raise long-run EU GDP by about 3 percent, with two-thirds from deeper banking integration and the remainder from reducing cross-border barriers to and expanding the supply of risk-capital. In addition, these financial reforms would magnify by an additional percentage point of GDP the gains from a broader set of domestic structural reforms that improve business dynamism and innovation. Smaller EU economies and younger firms benefit disproportionately. READ MORE YOU MAY ALSO BE INTERESTED IN: COUNTRY INFO IMF VIDEOS DATA TOOL NEWS AND INTERVIEWS IMF BLOG F&D MAGAZINE EVENTS PODCASTS NEWSLETTER FOLLOW US ON: This email has been sent to theworldbanka...@googlegroups.com Make changes to your subscription, unsubscribe or add more items here.