The report finds that the degree of integration varies considerably across the different market segments, depending also on the degree of integration of the respective market infrastructure. While the euro area banking markets for wholesale and capital market-related activities also show clear signs of increasing integration, the retail banking segment has remained more fragmented, as has been the case with the underlying market infrastructure.
A number of initiatives to reduce the fragmentation of securities settlement systems, such as the Eurosystem’s T2S project and the industry Code of Conduct for Clearing and Settlement, are aimed at fostering further improvements in securities markets integration.
A second chapter of the report provides “Special Features” which include in-depth assessments of selected topics.
“Financial development: concepts and measures”
The focus of the Special Feature lies in the presentation of a selection of indicators to quantify the functioning of financial systems in the euro area. Overall, there appears to be further scope for structural reforms in the financial sectors of the euro area.
“The STEPinitiative”
It describes one of the ways in which the ECB and the Eurosystem can promote financial integration in the euro area, namely by acting as a catalyst for private sector activities.
“Integration and development of mortgage markets in Europe”.
The Eurosystem strongly supports further integration in mortgage markets, given that it could result in a more uniform transmission of monetary policy impulses and a more stable financial system.
“Integration of large-value payment and securities transactions: TARGET2, TARGET2-Securities and CCBM2”
The article describes the Eurosystem’s role and activities in providing payment and settlement facilities that foster market infrastructure integration and ensure the highest standards of efficiency and safety.
The final chapter provides an overview of the main Eurosystem activities in the field of financial integration in 2007.
Press release
Full report
Presentation by Lucas Papademos
© ECB - European Central Bank
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