Washington, D.C.— The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC) today released International Financial Markets: A Diverse System is the Key to Commerce, a new report which provides a broad overview of the global financial system and how it boosts economic growth, facilitates global trade, and provides opportunities to companies, entrepreneurs, and individuals.
The report highlights the importance of diversity in the international financial markets, and how the key attribute of the current system enhances stability and growth.
“For economic growth to take hold, businesses must have access to many sources of capital. In a global economy, businesses must be able to access capital, from banks and non-banks, wherever they are operating. Regulatory structures that create artificial barriers, instead of a free flow of capital, will harm businesses, destabilize the financial system, and inhibit growth and job creation,” said David Hirschmann, president and CEO of CCMC. “Now, with the European Union currently in the process of considering a capital markets union, this report and its findings are especially relevant.”
The report, authored by Dr. Anjan Thakor, John E. Simon professor of finance and PhD program director at the Washington University Olin School of Business, also looks at how the global financial system meets the needs of main street businesses of all sizes, and discusses what the growing interconnectedness of the global financial landscape means for enterprise.
“The global financial system promotes economic growth by performing key functions that aid and enhance the flow of capital from savers and investors to budding companies to expanding corporations, increasing opportunities on both sides of the equation,” said Thakor. "Understanding how this system works, and how to support it, is critical as regulators on every continent look to modernize or alter current regulatory structures.”
To accompany the report, CCMC is launching a new interactive infographic that illustrates how main street businesses utilize the financial services industry to overcome the daily challenges faced by businesses owners around the world.
A copy of the report is available here.
Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.