The Role of Capital Markets in Financing the US Economy

In the context of current discussions on the development of a Capital Markets Union at the EU level, the reference is often made to the disintermediation funding model of the US economy that relies less than in Europe on bank financing. This financing structure seems more the result of a long historical process marked by a joint influence of factors related to the market size and financial regulations, than the result of a strategic choice by public authorities. The securitization of credits, a widespread practice particularly for real estate loans, also helps explain the financing structure of the economy.