In recent years, banking markets in the Eurozone have seen major changes linking themÂ closer together. The Banking Union has brought, among other things, a new SingleÂ Supervisor and steps towards a Single Rulebook. These changes were driven by a desire to strengthen financial stability and bankÂ resolvability, reducing risks for taxpayers.Â But closer integration of banking markets can also lead to fiercer competition, delivering Europeans better services at lower prices.
In this report, we assess the degree of integration across the Eurozoneâ€™s banking markets in a number of fact sheets. We find that banking remains strongly compartmentalised along national borders. While acknowledging the very important steps that have already been taken, we conclude that the Eurozoneâ€™s banking markets remain highly fragmented. This means that from a financial stability and a competition perspective, Europe is missing out on opportunities. Households and businesses stand to gain from further integration of the Eurozoneâ€™s banking markets.
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