Banking Integration in the Euro Area

By I. Cabral, Frank Dierick, J. Vesala. Social Science Research Network, 2002

250 citations recorded by the source corpus.

This paper provides an assessment of the degree of integration in banking services in the euro area. It diverges from the typical analysis on integration in the financial sector by focusing on the main financial products and services provided by banks to corporate and personal clients rather than on financial markets. As the “law-of-one-price” concept is often not applicable to banking products and services, a wide range of quantitative and qualitative indicators of integration is used in the analysis. Indicators of integration are reviewed for three product areas: wholesale (unsecured interbank loans and deposits, repo market) capital market-related (corporate finance services, asset management and trading) and retail (directed to households and small firms). The main conclusions are that while the market on wholesale banking services is strongly integrated and integration is advancing at a fast pace in capital market-related activities, market segmentation is still significant at the retail level.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/2062cd187e4af42a10f98d0eaa916146afa1ac04

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Citations in the corpus

Measuring financial integration in the euro area (2004, background): “Moreover, Cabral et al. (2002) examined the integration of the euro area banking market.”
MEASURING FINANCIAL INTEGRATION IN NEW EU MEMBER STATES (2008, unknown): “Retail rates are typically affected by both macro (e.g. market interest rate levels) and micro factors (e.g. market power of local banks) - see, for instance, Cabral et al. 2002 for further discussion.”
EXPLANATORY FACTORS OF MARKET POWER IN THE BANKING SYSTEM (2007, unknown): “4 With country-level data, Corvosier and Gropp (2002) and Fernández de Guevara et al.”
Bank Interest Rate Pass-Through in the Euro Area: A Cross Country Comparison (2006, unknown): “43 As also confirmed by other recent studies of the degree of financial integration in the European banking sector, see e.g. Cabral et al. (2002), Adam et al. (2002) and Baele et al. (2004).”
Bank Interest Rate Pass-Through in the Euro Area: A Cross Country Comparison (2006, unknown): “43 As also confirmed by other recent studies of the degree of financial integration in the European banking sector, see e.g. Cabral et al. (2002), Adam et al. (2002) and Baele et al. (2004).”
Market Power in European Banking Sectors (2005, background): “The evidence in Cabral et al. (2002) and Manna (2004) points to a fully integrated market in wholesale banking services.”
Convergence in Eurozone Retail Banking? What Interest Rate Pass-Through Tells Us About Monetary Policy Transmission, Competition and Integration (2003, unknown): “Although retail interest rates have been somewhat converging, this is not necessarily an indication of an integrated market as argued for example by the European Commission’s Economic and Financial Committee in a special report (2002) and in a recent ECB study by Cabral, Dierick, and Vesala (2002).”