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A Comparison of Balance Sheet Structures in Major EU Countries

Published online by Cambridge University Press:  26 March 2020

Joseph P. Byrne  and
E. Philip Davis
Joseph P. Byrne*
Affiliation:
National Institute of Economic and Social Research
E. Philip Davis*
Affiliation:
Department of Economics and Finance, Brunel University, Uxbridge, Middlesex, UB8 3PH
*
e-mail: jbyrne@niesr.ac.uk
e-mail: e_philip_davis@msn.com
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Abstract

The UK is commonly viewed as having a ‘market oriented’ financial system, in contrast to other European countries which are seen as ‘bank dominated’. In the light of this supposition, we investigate sectoral balance sheet data for evidence of differences in financial structure between the UK and other major EU countries. It is found that the UK has much in common with Continental countries, in particular France, and they are themselves markedly heterogeneous. There is also some evidence of convergence towards a more market-oriented financial system, even in the most bank-dominated economy, Germany.

Type
Articles
Information
National Institute Economic Review , Volume 180 , April 2002 , pp. 83 - 95
Copyright
Copyright © 2002 National Institute of Economic and Social Research

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Footnotes

∗

The authors thank Ray Barrell and staff of the Commissariat Generale du Plan for helpful suggestions.

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