| Author (Corporate) | European Central Bank |
|---|---|
| Publisher | EC |
| Publication Date | 2014 |
| ISSN | 1830-7140 |
| EC | QB-AJ-14-001-EN-C |
| Content Type | Report |
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The European Central Bank (ECB) and the European Commission separately published reports analysing financial integration and stability in Europe in April 2014. The two annual publications, 'Financial Integration in Europe' (ECB) and the 'European Financial Stability and Integration Report' (European Commission), were presented at a conference at the ECB headquarters in Frankfurt. The reported show that significant financial fragmentation remains in the European Union and euro area, despite considerable improvements in recent years. The main conclusions were the following. + The financial market integration recovery process that started in mid-2012 continued in most market segments in the first months of 2014. This improvement reflects the fact that there is no longer a redenomination risk linked to the perception of a possible euro area break-up. + Developments in 2013 suggest that banks’ balance sheets have continued to improve, and that financial institutions have started to increase their exposure to cross-border sovereign debt instruments. At the same time, the banking sector is still concentrated and increasingly interconnected. + In 2013 improvements in financial integration and stability were the result of many factors. These included monetary policy actions – particularly Outright Monetary Transactions (OMTs) – the adoption of relevant regulatory reforms, the progress towards the establishment of the banking union, and a steady reform process in euro area countries. + Both the euro area and the single market are more economically and financially fragmented compared to the pre-crisis period; there is room to promote further integration in specific segments such as corporate bonds, equity and banking markets. |
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| Source Link | http://www.ecb.europa.eu/pub/pdf/other/financialintegrationineurope201404en.pdf |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
