Financial integration and structure in the euro area : June 2024

This is the third edition of the European Central Bank's biennial report on financial integration and structure in the euro area (FISEA). As explained in greater detail when the first edition was released in March 2020,1 it is designed to focus on structural developments in the financial system of the euro area and, in some cases, of the European Union (EU), as well as on related policy issues. In so doing, it covers developments in financial integration across member countries, changes in financial structure (the mixture of financial markets and intermediaries) and financial development or modernisation (for example through innovations in the financial system). Definitions of these three concepts and how they link to Eurosystem tasks and functions were provided in more detail in the 2020 preface. The findings of this report concern issues relevant for the policy discussion related to the European banking union, the European capital markets union and thus the financial aspects of deepening Economic and Monetary Union. The report has two main sections. The first section reviews changes to the environment and the context in which the euro area economy financial landscape is evolving. It also identifies policy priorities in the light of ongoing policy debates. The second section provides analytical material, with a focus on the main trends in financial integration, structure and development, based on a review of the standard set of ECB indicators of financial integration and structure.