Monday April 27, 2015 Search
Weather | Athens
14o C
09o 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)  
EU Commission to revise down Greek growth forecast
Further delays will only harm economy
Cosco eyes big network from Piraeus port
Fresh cuts to bank collateral may lead to capital controls
Akinci elected Turkish-Cypriot leader, raising hopes of peace deal on island
Mustafa Akinci, who won a run-off for the Turkish Cypriot leadership on Sunday, is a veteran politician seen as best placed to revive peace talks with the Republic of Cyprus. Akinci, 67, bea...
Merkel, Tsipras agree to stay in touch to reach debt deal
Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel agreed in a phone conversation on Sunday to maintain contact during talks between Athens and its lenders to reach a de...
Inside News
SOCCER
Panathinaikos beats Xanthi to rise to second
Panathinaikos jumped back up to the second spot of the Super League after its home win over Xanthi on Saturday, as PAOK slumped to third due to its draw at home with PAS Giannina on Sunday. ...
WATER POLO
Olympiakos wins Euro crown in women´s water polo
The women’s water polo team of Olympiakos won its first ever LEN Euro League at the Final Four it hosted in Piraeus by beating holder Sabadell from Spain 10-9 in Saturday’s final. After defe...
Inside Sports
ANALYSIS
If Greece falls, no one wants their prints on the murder weapon
«We're going bust.» «No, you're not.» «You're strangling us.» «No we're not.» «You owe us for World War Two.» «We gave already." The game of chicken between Greece and its international cred...
COMMENTARY
Reaching crunch time
Several cabinet ministers and MPs are no longer hiding it: They either openly admit that they are promoting the drachma or they murmur things like, “Why not the drachma?” Some go even furthe...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Akinci elected Turkish-Cypriot leader, raising hopes of peace deal on island
2. Panathinaikos beats Xanthi to rise to second
3. EU Commission to revise down Greek growth forecast
4. Further delays will only harm economy
5. Cosco eyes big network from Piraeus port
6. Fresh cuts to bank collateral may lead to capital controls
more news
Today
This Week
1. Greek tourism threatened by various factors
2. Agenda
3. Fresh cuts to bank collateral may lead to capital controls
4. Merkel, Tsipras agree to stay in touch to reach debt deal
5. Further delays will only harm economy
6. EU Commission to revise down Greek growth forecast
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Europe's collision course with Greece
3. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
4. Leaving the past in the past
5. Denialism
6. The price of compromise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.