Financial integration

The introduction of the euro seems to have had a strong effect on European financial integration.According to a study on this question, it has "significantly reshaped the European financial system, especially with respect to the securities markets However, the real and policy barriers to integration in the retail and corporate banking sectors remain significant, even if the wholesale end of banking has been largely integrated." Specifically, the euro has significantly decreased the cost of trade in bonds, equity, and banking assets within the eurozone. On a global level, there is evidence that the introduction of the euro has led to an integration in terms of investment in bond portfolios, with eurozone countries lending and borrowing more between each other than with other countries.