As a team of authors we have followed the building of the European financial system from different angles. We have contributed to the academic literature on this topic. Moreover, one of us has been teaching a course on European Financial Integration, from which this book has emerged. On the policy side, two of the authors have been directly involved in the work of national administrations (i.e., the Ministry of Finance and the Ministry of Economic Affairs in the Netherlands) as well as the European institutions (i.e., the Council and the European Commission). As part of our job, we have participated in many meetings in Brussels discussing the future of European financial markets and institutions and negotiating new European financial services directives.

How does this textbook compare with other books?

Different from other textbooks, European Financial Markets and Institutions has a wide coverage dealing with the various elements of the European financial system supported by recent data and examples. This wide coverage implies that we treat not only the functioning of financial markets where trading takes place but also the working of supporting infrastructures (clearing and settlement) where trades are executed. Turning to financial institutions, we cover the full range of financial intermediaries from institutional investors to banks and insurance companies. Based on new data, we document the gradual shift of financial intermediation from banks towards institutional investors, such as pension funds, mutual funds, and hedge funds.