Investment Operations

Study: Impact of Euroclearability

New Study by PwC UK and Strategy&

Capital markets have a critical role in the functioning of the economy. They link investors, such as lenders, to borrowers and transfer risk to those best placed to manage it. Access to capital markets allows governments to raise funding, enabling them to smooth government spending and to provide a buffer against external shocks and recessions, and to finance large investments.

Capital markets also finance businesses by complementing traditional bank financing, particularly for larger, longer-term and more risky investments. Numerous economic studies have shown that capital markets development has a positive impact on economic growth, particularly in the case of emerging markets.

However, to date there has been limited empirical analysis of the specific impact of Euroclearability. This study by PwC UK and Strategy&, addresses this gap by offering new evidence on the ability of emerging market sovereign and corporate issuers to raise capital in a more cost-effective manner.

The study shows that lower borrowing costs could also translate into broader welfare gains to Euroclearable countries through spending on healthcare and education, alongside encouraging public and private investment in infrastructure.

Download the white paper here.