This remains one of the main objectives of financial services policy at the EU level. The interaction between financial integration and financial stability is a complex one and thus warrants close attention. Financial integration can provide the necessary conditions for a smoother absorption of shocks by financial institutions and offers them more options for managing and diversifying their risks.
On the other hand, particular attention has to be given to the  3/4  profound challenges to financial stability due to the structural transformation of the financial system, including intensified cross-border links. Therefore, effective arrangements for financial stability need to be maintained.