MGI identified four subregions in Europe that each play a unique role in both the European and the global capital markets: the eurozone (countries using the euro), the U.K., Switzerland, and Eastern Europe.
The eurozone is now the second most important region in the global financial stock, following the monetary integration of 12 European countries and the introduction of the euro. The U.K. acts as Europe's financial hub and is a global foreign exchange hub. Switzerland is essentially a global private bank. And Eastern Europe is one of the hot growth spots in the global financial stock.
With a 31 percent share, Europe is the second largest region in the global capital market after the U.S. Europe's financial stock has reached $37 trillion in 2003, up from $3 trillion in 1980. This increase over the past 10 years reflects a growth rate of 9.9 percent, which exceeds that of the rest of the world.
Europe has been gaining global share across all asset classes. Unlike the U.S., Europe's financial stock comprises a higher share of bank deposits and government debt securities, and smaller shares of private equity and private debt securities. Private securities have grown fastest since 1993. In contrast, government debt securities have grown slowest, at 7.6 percent. Launch this chapter (PDF - 426 KB)
