Tuesday Jul 29, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
ECB says financial integration improves as crisis effect remains

By Alessandro Speciale

Financial markets in the euro area are still recovering from fragmentation caused by the debt crisis, according to the European Central Bank and the European Commission.

“The financial market integration recovery process that started in mid-2012 continued in most market segments in the first months of 2014,” the ECB and EC said in reports published today. “This improvement reflects the fact that there is no longer a re-denomination risk linked to the perception of a possible euro area breakup.”

The risk of the splintering of the currency bloc at the height of the debt crisis led banks to retrench behind national borders and unwind progress in financial integration achieved since the creation of the euro. Fragmentation started receding after ECB President Mario Draghi said in 2012 that he would do “whatever it takes” to save the currency union and announced OMT, a program to buy the bonds of stress nations if needed.

Even so, the euro area has not yet recovered to levels of integration seen before the crisis, according to today’s reports.

“Both the euro area and the single market are more economically and financially fragmented compared to the pre- crisis period,” the ECB and EC said. “There is room to promote further integration in specific segments such as corporate bonds, equity and banking markets.”

Factors that have improved financial integration include regulatory reforms, monetary policies such as the still-untapped OMT program, and “steady” reform process in euro-area countries, according to the reports.

The ECB is conducting a Comprehensive Assessment of the largest lenders in the 18-nation euro area before it takes over as the region’s bank supervisor in November, in a step toward a European banking union. The review, which includes a balance- sheet analysis and a stress test, spurred European banks to raise 30 billion euros ($42 billion) in extra capital so far, Morgan Stanley said in a note on April 8.

The reports underline the “crucial importance of implementing the banking union to restore the financial sector’s capacity to support economic activity,” EU Internal Market and Services Commissioner Michel Barnier said in a statement. “The new legal framework will ensure that banks will face the same market discipline as any other business, rather than being bailed out by European taxpayers.”

The ECB said that it has developed a new index of financial integration called SYNFINT. The indicator reflects developments in markets for money, bonds, equities and banking and shows the damage caused by the financial crisis, it said.

[Bloomberg]

ekathimerini.com , Monday April 28, 2014 (12:05)  
Greek dairy company Fage wins yogurt case in Britain
More than 120,000 households to receive special benefit
Greece names fifth privatization agency chief in four years
Great margin for growth in exports
World’s largest solar boat on Greek mission
The world’s largest solar boat, the catamaran PlanetSolar, will embark on a Greek mission to find one of the oldest sites inhabited by man in Europe, an organizer said Monday. Starting on Au...
Municipal engineer dies in Thessaloniki following workplace accident
A 47-year-old mechanical engineer working for the Municipality of Thessaloniki died on Tuesday at the northern port city's AHEPA hospital due to injuries sustained on the job on July 21, the...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek dairy company Fage wins yogurt case in Britain
2. World’s largest solar boat on Greek mission
3. More than 120,000 households to receive special benefit
4. Municipal engineer dies in Thessaloniki following workplace accident
5. Tsipras discusses Cyprus with Anastasiades in Athens
6. Venizelos to meet Nimetz in Athens
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. Venizelos to meet Nimetz in Athens
4. World’s largest solar boat on Greek mission
5. Tsipras discusses Cyprus with Anastasiades in Athens
6. Municipal engineer dies in Thessaloniki following workplace accident
Today
This Week
1. Climber dies in Mount Olympus fall
2. Unequal after death
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.