2017年-ECB欧洲央行_Financial_integration_in_Europe_May_2017_104页_1mb

Summary of Financial Integration in Europe (May 2017)

Core Content

The ECB's annual report on financial integration in Europe provides an assessment of the current state of financial integration in the euro area and highlights key policy initiatives aimed at improving it. The report introduces two major changes: the alternating publication of full and concise versions of the report, and the inclusion of a regular analysis of the "quality" of financial integration, focusing on its economic benefits and resilience.

Main Viewpoints

1. Overall Assessment of Financial Integration

• Financial integration in the euro area has shown mixed developments since the previous report.
• Money market integration remained stable in 2016, but banking, bond, and equity markets showed diverging trends.
• The ECB's price-based composite indicator of financial integration was volatile, while the quantity-based indicator flattened out, indicating no significant progress in aggregate financial integration.
• The lower levels of integration observed in 2016 may be attributed to the underrepresentation of cross-country risk sharing in financial markets, rather than a decline in integration per se.
• The report emphasizes the importance of assessing the economic benefits and resilience of financial integration, not just its quantitative extent.

2. Key Policy Issues

• Banking Union: The ECB supports initiatives to reduce risks and enhance risk sharing, including the establishment of a European Deposit Insurance Scheme (EDIS), the reduction of non-performing exposures (NPEs), and the targeted review of bank internal models.
• Capital Markets Union (CMU): Harmonizing insolvency rules and consumer protection is crucial for developing capital markets. A macroprudential framework for non-bank financial intermediaries is also needed to ensure financial stability.
• Securitisation: The new STS (simple, transparent, and standardised) securitisation framework should balance the revival of markets with financial stability concerns.
• Cross-border M&As: These are essential for improving retail bank integration and enhancing risk sharing through credit markets. However, they have been limited due to regulatory and structural obstacles.
• Policy Initiatives: The ECB advocates for the harmonization of national discretions (ONDs), the consideration of the euro area as a single jurisdiction for Basel surcharges, and the alignment of tax treatments across member states.

Key Information

Financial Integration Indicators

• Price-based composite indicator: Aggregates 10 indicators covering the period from Q1 1995 to Q4 2016, measuring the extent of financial integration.
• Quantity-based composite indicator: Aggregates 5 indicators from Q1 1999 to Q3 2016, reflecting the share of cross-border asset holdings in a fully diversified portfolio.
• Risk sharing indicators: Two new measures are introduced to assess the economic benefits of financial integration, focusing on cross-country risk sharing.

Chart A: Price and Quantity-based Financial Integration Indicators

• The price-based indicator was volatile in 2016, while the quantity-based indicator flattened out.
• The results suggest no progress in aggregate financial integration over the observation period.
• The level of integration is comparable to that seen in the early 2000s, with some indicators showing a decline since the pre-crisis period.

Chart B: Consumption Risk Sharing in the Euro Area

• Risk sharing remains low in the euro area, with limited private financial risk sharing contributing significantly.
• The large light blue portion of the bars indicates that most income shocks are not smoothed by cross-border financial mechanisms.
• The small dark blue and yellow portions reflect the limited role of cross-border equity holdings and credit in smoothing consumption.

Chart C: Bank M&As in the Euro Area

• Cross-border M&As have been limited, with most activity being domestic.
• The number of central securities depositories connected to TARGET2-Securities (T2S) increased to 18, covering 16 European markets, enhancing support for capital market integration.

Special Feature: Cross-border Bank Consolidation

• Cross-border consolidation is seen as the only realistic path to greater retail bank integration.
• It could improve risk sharing via credit markets and the functioning of the Monetary Union.
• The new Single Supervisory Mechanism (SSM) and Single Resolution Mechanism (SRM) aim to reduce concerns about "too big to fail" and manage cross-border contagion risks.

Conclusion

• Financial integration in the euro area is at a standstill, requiring continued monitoring and policy efforts.
• The ECB emphasizes the importance of improving both the extent and quality of financial integration.
• The quality of integration, particularly in terms of risk sharing and resilience, is a growing focus of the report.
• The completion of the banking union and the development of the CMU are seen as critical policy areas to enhance financial integration and stability.