Financial Markets and Institutions

Written for undergraduate and graduate students of finance, economics and business, the third edition of Financial Markets and Institutions provides a fresh analysis of the European financial system. Combining theory, data and policy, this successful textbook examines and explains financial markets, financial infrastructures, financial institutions and the challenges of financial supervision and competition policy. The third edition features greater discussion of the financial and euro crises, including extensive analysis of their causes and impact, as well as their remedies. New material covers unconventional monetary policies, the Banking Union, the Basel 3 capital adequacy framework for banking supervision, macroprudential policies and state aid control applied to banks. The new edition also features wider international coverage, with greater emphasis on comparisons with countries outside the European Union. Visit the companion website at www.cambridge.org/de_Haan3e for password-protected PowerPoint lecture slides, solutions, figures and tables for instructors, and exercises for students. Advance praise: 'A quarter of a century ago, the European financial system consisted of segmented national markets and institutions. The process of creating a single unified system has made considerable progress but still has some way to go. This book provides an excellent account of why this process is important, the current situation, and how it will proceed in the future. It is very well suited for its target audience of advanced undergraduates and Masters students and will be useful to all those interested in the topic. I highly recommend it.' Franklin Allen, Executive Director of the Brevan Howard Centre and Professor, Imperial College London Advance praise: 'Now that an integrated European banking and financial system has become established, there is a need for a book to describe and to analyse its working. The authors, who have great experience in the practical, regulatory and academic aspects of their subject, do this admirably, clearly and succinctly. This will be an invaluable textbook for all students of European banking and finance.' Charles Goodhart, Professor Emeritus, London School of Economics and Political SciencePreface; Part I. Setting the Stage: 1. Functions of the financial system; 2. Financial crises; 3. European financial integration: origins and history; 4. Monetary policy of the European Central Bank; Part II. Financial Markets: 5. European financial markets; 6. The economics of financial integration; 7. Financial infrastructures; 8. Financial innovation; Part III. Financial Institutions: 9. The role of institutional investors; 10. European banks; 11. European insurers and financial conglomerates; Part IV. Policies for the Financial Sector: 12. Financial regulation and supervision; 13. Financial stability; 14. European competition policy; Index.