IMF proposes improvements to EU plan

The IMF found that three quarters of credit booms in emerging markets end in banking crises.

LONDON: The International Monetary Fund (IMF) has proposed that the European Union (EU) improve transparency, regulatory oversight and insolvency rules in its proposals to create a stronger capital market system, a senior IMF official said.

EU efforts to create a Capital Markets Union (CMU) have made little headway so far, but the plans are seen as offering major benefits, such as encouraging firms to raise more funds through stocks and bonds rather than relying so heavily on bank loans.