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IDM SAPolish financial institutions present their view on capital markets development
Polish capital market, insurance, banking and market infrastructure institutions have jointly developed a point of view with recommendations for advancing Capital Markets Union and building Savings and Investments Union, the institutions said in press releases.
The signatories of the position paper 'Advancing Capital Markets Union and Building Savings and Investments Union: Pan-European Integration and EU Regional Capital Markets Growth' are: Warsaw Stock Exchange (WSE), Chamber of Brokerage Houses (IDM), Chamber Pension Plan (IGTE), Polish Chamber of Funds and Investment Management (IZFiA), Central Securities Depository of Poland (KDPW), Polish Chamber of Insurance (PIU), Polish Private Equity and Venture Capital Association (PSIK), Association of Stock Exchange Issuers (SEG), Association of Individual Investors (SII), Polish banking lobby (ZBP).
The document is the result of a consultation and points to a balanced pan-European integration while preserving the competitiveness of regional capital markets, which are the foundation of financing for small and medium-sized enterprises.
"The authors of the stance emphasise that the European Union needs effective access to capital to support innovative ventures and to meet the goals of energy transformation, digitalisation and infrastructure spending. Small and medium-sized enterprises, which are a significant source of national income and employment in the EU, are key beneficiaries of funding from regional capital markets," they wrote.
According to the institution, to fully unlock the sector's potential, there is a need to simplify regulation and reduce reporting requirements, which can currently be a key barrier for many SMEs.
It was stated that for the development of European capital markets, it is important to continue to attract individual investors, who are an essential link to capital markets.
The recommendations presented also include proposals for the development of pension funds and plans and long-term investment products that enable households to build capital for the future.
"Special attention has been given to the private equity, venture capital and private debt market, which plays a key role in financing early-stage companies and innovation projects. The paper also draws attention to the need to increase market liquidity, optimise post-trade capital market processes that meet the needs of regional and local markets, and revitalise European investment banking," the authors wrote.
According to the position paper, a key element is also to be the development of financial education and the support of an 'investment culture' to help raise awareness of the benefits of investing in the capital market.
As stated, the stance presents the perspective of the Polish market in the debate on the shape of the European capital market and highlights the importance of the activities of Polish organisations, which will be promoted during the Polish presidency of the EU Council.
"The key message will be to move towards interoperable regional financial hubs that reflect specificities tailored to the needs of regional innovative SMEs. The Polish proposal thus emphasises the balance between broad integration and preserving the competitiveness of regional capital markets," it was added.
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