The euro-area financial system: Structure, integration, and policy initiatives

Abstract

Four years after the introduction of the euro, this paper provides an overview of the current structure and integration of the euro-area financial systems and related policy initiatives. We first compare the euro-area financial structure with those of the United States and Japan. Using new and comprehensive financial account data, we also describe how the euro-area financial structure has evolved since 1995. We document the progress towards integration of the major euro-area financial segments, namely money markets, bond markets, equity markets, and banking. Finally, we discuss recent policy initiatives aimed at further improving European financial integration.